SMI –3rd May 2013 – Market View

Posted By : Kishore B.S

Hi friends,

Yesterday the markets gave a positive surprise by rallying up by nearly 70 points above the pivotal resistance level of the 5930-5950 to reach the psychological barrier level of the 6000.

Technically this has been the levels, that has been the target zone for the time being and the rally above that will be clearly be stimulated and guided by the RBI policy to be announced today and if that happens then the target for the current rally would easily be the 6180 levels in the next fortnight.

On the flip side the bulls need to watch for the 5900 levels with caution for them to be stable and in hold failing which the bears might be back into action resulting in the profit booking or correction to the 5700 levels, so much depends on the RBI policy today, where the markets have discounted a 25 bps cut and any surprise would be favourable for the bulls and none to the bears,,,, till then it would be best to watch with adequate stoplosses for both buying and selling side……

(Inputs: Basket option Research bureau – Bangalore)

Cheers!!

Team SMI

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