Post Market Commentary – 13th June 2012

Posted By : Kishore B.S

Friends !!!! There goes a proverb that “Silence marks the beginning of any big Wave” which can be a storm, thunderstorm, tsunami or any any natural calamity, which has huge impact on its surroundings. Our markets were in similar contrast wherein the Indices remailed resilient and subdued with the momentum in the Indices limited to around 50 points, moving on either side of the positive and negative spectrum. The subdued nature of the Indices ahead of the Key Inflation numbers tomorrow indicates that the Markets are cautious and curious for the direction to be taken. Since yesterdays rally was largely driven due to the expectations of a more than robust cut in CRR in excess of 50 bps after the dismal IIP numbers. And today the followup of the rally was missing, since the broader mindset of the market participants seemed now to be confused as to if the rally of the 300 odd points was justified. The markets today was largely volatile where the Indices rallies slowly and confidently during the first half of the session only to witness Profit booking at the higher levels. It was important to note that the Indices managed to cross yesterdays high and close at 6 weeks high. But the markets also displayed that the upmove lacked the strenght in the wake of uncertainity prevailing in the European markets today and only the Inflation numbers tomorrow would provide the ammunition to either the bulls or the bears to take the direction and till then it would ideal to just sit out and watch. (Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute. Bangalore) Cheers!! Team SMI

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