Posted By : Kishore B.S
The Indian Indices went with the Global sentiments yesterday where the losses made during the sessions was retraced fully during the day and the markets end with nominal losses.
Though most of the Asian peers were positive by the closing after recovering their losses but our Indices ended slightly in the Red due to the influence of the US and Euro markets which were in the Red. Most of the Global markets are looking towards the US now with their Fiscal Cliff pending to be cleared by the End of this year failing which the biggest global Economy faces risk of Default.
Most of the analysts globally are expecting the same to be cleared by Christmas with not much debate and amicably from both the sections of the US SENATE, however yesterdays late news of the Plan B getting rejected by the Speaker has led to a sell off in the Dow futures which is trading around 1.5%-2% lower and this is likely to impact most of the Asian and Global markets.
On the technical charts point of view the markets yesterday showed early signs of some upmove and chances of crossing over the cliff of 5940-60 however the same might be challenged today. But if the Indices manage to do a coup of sorts by closing above the 5900 levels then still there is probability of the Indices touching new highs before the Expiry of the FNO next week.
For the bears to rule supreme a closure of the Indices below the 5860 would be the right signal for the expiry to be around the 5780 levels……
Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)