Market View – 4th June – SMI

Posted By : Kishore B.S

Hi Friends !!!!!

The markets just tanked on Friday leaving no hopes for the bulls or investors with the slightest iota of doubt that the Euro Crisis is spelling DOOM for the entire Global markets. The lower than expected GDP data released on Thursday coupled with the increase in Trade deficit for the Month of April and no Policy reforms to announced by the FM or PM or Economic Council fuelled concerns among all class on investors in the Indian markets to exit on large scale of selling on Friday.
Though as a Silver lining the Rupee strengthened against the Dollar due the falling of crude prices below the 100$ mark yet unless the Rupee recovers to above 53 per $ the impact would not be much on the already shrinking economy. Since the recent hike in Petrol prices are unlikely to be rolled back untill that happens. Thereby hurting the economy and also the Trade deficit.
With Fridays closure the Indices are on strategic directional momentum, indicating that if the Indices close below the 4760 mark in the next 2-3 trading sessions could easily lead the Indices to the lows witnessed during December easily which is 4660. The pattern of the breakdown would be confirmed only if the Indices were to close below the 4760 mark, on the higher side the closing prices of Friday form an important level to watch which if crossed could signal that the 4800 mark is here to stay and we could look forward for some consolidation during the month of June ahead of the Numbers in July for the Q1 of FY12-13, which could set the future direction of the Indices.

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


Team SMI

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