Post Market Commentary – 3rd July 2012

Posted By : Kishore B.S

Friends !!!!

The markets seem to be in the consolidation phase after the huge rally witnessed on Friday, the markets witnessed profit booking yesterday and today the markets were largely range bound with the indices hovering between yesterdays low and the initial highs it opened with today.


The market momentum yesterday and today have been signaling that they have been waiting for some more positive news flow to reach the 5400 mark which has been the target zone and not yet been reached inspite of the BIG upmove. The results season are also scheduled to begin from next week and that could possibly be the trigger.


The markets could also do another thing to rally ahead of the Results season and then take a correction after the results season due to lower than expected earnings number or could consolidate at current levels till the results season and then make the further upmove to new highs in the last 2 years.


The European news flow has been positive in the last few days due to the package being announced last week and also further expectations of easing, this could bolster the sentiments across the global markets and fuel further rally.

For the time being it would be ideal to wait for some policy announcements and also watch the news emanating from Europe and Results season that could set tone for further course now that we are near the 5400 mark which has not been crossed successfully in the last 2 years.

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


Team SMI

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