Market View – 29th May – SMI

Posted By : Kishore B.S

Hi Friends !!!!!

The markets continued with its uptrend yesterday finally moving above the critical resistance level of 4946 instilling positive sentiments among all the investor class and assuring that the much awaited 5000 could be soon reached soon.
The charts as on yesterday EOD also indicate that now the indices are moving according to the FIBONACCI levels and with yesterday closure above the 61% retracement at 4946 the next resistance zone is the 50% retracement at 5080 levels. The expiry of the current month series which is on Thursday also is of prominence now since we have fallen back from the 5240 levels to the 4780 levels in the current series and some amount of the bounce back easily gives the target of 5060 on a conservative basis.
The US markets were closed yesterday and the Euro markets were positive, however this week is significant with many data and newsflow likely to emanate from across the Globe could provide the direction. The depreciating Rupee also is like to haunt us back if it crosses the 56 mark yet again which needs to be factored in.
On the positive front as many have been expecting across the Globe any QE from Europe or UK or China could trigger the upswing to favour the bulls which needs to be watched.
For the day the sentiments remain largely positive as long as we stay above the support level of 4946 with likely target of 5028-5069 by the expiry.

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


Team SMI

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