Market View – 24th May – SMI

Posted By : Kishore B.S

Hi Friends !!!

The markets remained largely volatile and range bound yesterday with the indices hovering between the support level of 4800 and resistance zone of 4860, the trading range has been getting narrower and the Rupee depreciation is creating lot of uncertainty among the investors at large.
Yesterday evenings announcement of steep in Petrol prices could provide some relief but the failure of the Govt to increase the price of Diesel which is the larger denter to the exchequer has surprised many since that would have given the much sought relief for the markets already worried about the lack of policy action to tackle the deficit caused by the Subsidies.
With yesterdays move the charts are indicating that the indices have for the time being taken support again around the 4800 mark and held on from dipping into the downward trending channel thereby delaying fears of further dip to 4640 levels for the time being. But the fear of dip is like a ticking clock since any further depreciation of the Rupee could detonate the markets and indices to fall further to the lows of 4640 witnessed during the months of December.
For today the markets could find some support around the 4800 mark due to yesterday Petrol Price hike and the Rupee hovering around the 56 mark, any appreciation of the Rupee could lift the sentiments of the market coupled with positive developments at the Euro summit whereby the indices could easily retrace the 4900 mark soon.
However the 4800 mark needs to be watched with caution on the lower side since a fall below that level could trigger further downfall to the 4640 levels sooner than expected.

(Inputs Mr. Hemanth .V, Faculty TA, Stock Market Institute, Bangalore)


Team SMI

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