SMI – 29November 2012 – Market View

Posted By : Kishore B.S

Hi friends,

After the holiday mood yesterday on account of the Gurunanak Jayanthi, the markets
are set to open on a slightly positive note given the closing on Monday above the 5722.
However the technical charts are indicating that the upmove which has started on Monday and continued on Tuesday may face some resistance today on account of the futures expiry where the Indices may remain volatile since they would face the hurdle of the 5750-5770-5790 levels which have been strong barriers and have not been crossed for quite a long time.
Though the charts are pointing out that the same would be crossed if some efforts are made yet the convincing story lags due to the long history of failure to sustain these levels. Also the fact that no positive news except the Parliament logjam on FDI in retail getting cleared seems to be the unbelieveable fact.
But markets being peculiar and the given the long track record of the technical charts they are indicating that the 5790 levels could be taken off and we could see the 5840-5900 levels soon.
With this in mind we could initiate some long positions on the markets with the flip side or stoploss of the 5700 levels which if cut could lead to downslide to the 5600 soon…..

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

Cheers!!

Team SMI

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