SMI – 15th October – Market View

Posted By : Kishore B.S

Hi Friends !!!!!

Last week the markets mostly remained subdued and volatile due to the IIP data and the INFY results which were awaited. Both of the most awaited events turned out to be distant than the market expectations. On the IIP data the numbers were way above the expectation of 1-1.5% and the INFY guidance given on Friday after the results were way down the expectations, where the guidance was further reduced.
This reduction in Guidance sent the stock into a tizzy by nearly 8% in the opening trade though it recovered 3% in the ensuing trading sessons and closed at 6% down. Overall the start of the results season with the behemoth INFY was not upto the mark and now the markets are waiting for the Inflation numbers that are to be released today. Most of the market participants are expecting the Inflation numbers on the Higher side due to the increase in the prices of Diesel and LPG during the last month.
The participants are also expecting the RBI to remain hawkish on the Inflation numbers thereby reducing chances of cut in the rates to be announced during the meet of the RBI at the end of the month.
The technical charts are indicating mixed signals whether 2 of the Indicators are Indicating the continuation of the overbought signals and one of the indicators is pointing out towards the scope for further upside if the resistance level of the 57305750 is taken out towards the Indicated target zone of the 5880 levels.
But the technical pointers would work only if the support zone of the 5640-5660 holds and the Indices are able to move above the 5750 mark with success. Until then it would ideal to trade lightly with quick precision in the direction of the markets for swing trades.  

(Inputs: Mr. Hemanth.V, Facutly TA, Stock Market Institute – Bangalore)


Team SMI

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