SMI –10th october 2013 – Market View

Posted By : Kishore B.S

Hi Friends,

Nifty opened gap down yesterday and then recovered to rally 80 points closing above 6000 levels. The rally was majorly due to appointment of Yellen as the Fed chief and

better than expected trade data.

Yanet Yellen is a dove who supports QE. So, her appointment brought a cheer in the market as QE tapering is expected to get delayed. The trade deficit came at $6.7 billion which was ay below expectation of $10 billion. Though the market has rallied we have not seen any major recovery in the rupee. So, the sustainability of the rally is doubtful.

Tomorrow we have Infy result. In the past Infy has moved 10-15% on result day. It has a high weightage in Nifty. Also, Infy results will give an estimate for the results of other IT companies. Everyone is expecting the results to be good on the basis of dollar appreciation. So, the expectation is very high. It will be interesting to see how Infy lives up to this expectation.

The global markets are in a calm. There is no particular direction. We are trading in the upper band. The markets look overvalued. The macro economics do not suggest that these high levels would be sustained for long.

Cheers  !!

Team SMI

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