Posted By : Kishore B.S
The Indian Indices tanked yesterday on largely Negative Global cues emerging out of the Italian Election outcome, which triggered a Global selloff early in the day which spread to our markets as well.
Though the initial opening was just 1% lower, the ensuing Railway Budget which lacked the reformist measures, any new projects and Budgetary spending reflected the austerity picture of the Govt. This no view or spending cuts lead to further sell off in the markets resulting in the Indices tanking further down, the Major Blue chips lead the major declines, or losers.
The technical charts at this juncture are indicating that though the markets are in oversold zone, yet some more decline cannot be ruled out, and any upmove today should be factored in as just a precursor to a rally or just a dead cat bounce of the yesterdays sell off.
The major event of tomorrow which is the Union Budget is the fact to look out for, and that is likely to make it or break it, at this critical juncture there are two likelihoods, one of the 5640 levels on the downside thereby closing the GAP or bounce back to the 5950-6000 thereby covering the shorts being created for the last fortnight during the FNO expiry tomorrow.
All said and done, it would be worthwhile to watchout for the Budget tomorrow and take positions accordingly and till then there would be no harm it taking small long positions for today with some marginal gains…………….