SMI – 3rd January 2013 – Market View

Posted By : Kishore B.S

Hi friends,

Yesterday the Indices opened with a Gap and remained in the higher range without much events expect a bit of volatility due to the profit booking. The confirmation of the breakout of the previous session was further confirmed today after the closing yesterday above the 5960 levels and near the 6000 levels which was long overdue.
The charts at this point in time are indicating that some profit booking or correction by some small points to retest the 5960 levels cannot be ruled out. There might be chances that the 5900 levels can also be tested as well but if the bounce back at that levels does not happen then the correction could get deeper without hitting the 6080 levels which is the first target of the current breakout.
Like my point yesterday at this levels it would be wiser to get into stocks of infra, metals and realestate stocks since these have not appreciated much during  the earlier rally and could kick start to some higher levels.

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

Cheers!!

Team SMI

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