Post Market Commentary – 16th July 2012

Posted By : Kishore B.S

Friends !!!!

The markets witnessed some amount of Monday Blues today after a long gap, where the Nifty broke down below the 5200 mark which was the earlier resistance level and now the support zone.
The breaking was also significant since the Gap created during a fortnight back during the upward breakout is finally getting filledup now since the 5200 level is broken and now it needs to watched if the 5190 level would be held and also if the nifty would reach the 5160 mark and cover the gap tomorrow during the opening bell.
On the silver lining the Inflation numbers have taken a backseat by coming in at 7.25% which is a bit lower against the earlier numbers and this could set the market in the expectation mode of some relief in interest rates cut by the Regulator during its review to be held in the next fortnight.
The European confidence data and the US purchases data released today are also around the expectation mark, however the Euro zone is looking forward for the German meet and the Euro meet to support the Spain with bailouts which is scheduled this week for cues of further Bailouts and Stimulus.
Rumours are also afloat of Chinese Stimilus due to Wen Ziabao words of creating support for the Economy which needs to be watched out for alongwith rumours of some Stimulus from Our local Govt as well after the Presidential Polls.
Till then it would be fair to assume that the 5160 levels would hold keeping the hopes of the upmove to 5440 levels ……
(Inputs Mr. Hemanth.V, Faculty TA, Stock Market Institute, Bangalore)
Team SMI

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