The markets remained largely resilient today and displayed uncertainty sentiment that it prevalent in the minds of the market participants the world over. Though the opening was largely flat, the Indices slipped during the first half of the session breaking yesterdays low of 5181 to create new low of 5169 on the Nifty.
The new low made today and the bounce back witnessed after that is a welcome sign, since the major fear was the Gap that was long not covered made during the spurt last fortnight end. Todays covering of this gap has ignited new hopes amongst the participants that we could probably cover the Upper Gap made during last Thursday after the Infy results in the range of 5260-5300 if all goes well globally especially the Fed Chairmans statement today.
Today much awaited event apart from the Fed Chariman’s testimony and statement is the Beige Book remarks on the Economic health of the US and the likely actions that are likely to be embarked upon. If the health is largely weak a Fresh round of Easing cannot be ruled out and if the Economic Health is sounded as decent enough then no Easing or Stimulus would be announced leading to the change in the sentiments of the market participants who are hoping for some more action globally to support the faltering Economy.
Overall the Indian markets have closed near the pivotal levels of the above 5200 mark after long time today setting hopes high that we might reach the 5300 mark maybe tomorrow or cut the support levels of 5160 and plunge to the 5080-5050 support zone based on the Global statements that are likely to shape today……
(Inputs: Mr. Hementh. V, Faculty TA, Stock Market Institute, Bangalore)