SMI – 5th March 2013 – Market View

Posted By : Kishore B.S

Hi friends,

The markets were largely range bound during the trading session on the start of the week accompanied with negative global sentiments, and domestic as well, due to the statement made by the FM with regard to the reconsideration the DTAA with Mauritius.

This bold statement of the FM was enough to deter most of the FIIs who have largely invested into the Indian Indices and markets through the Pnotes based from the mauritius. The Indian Govt which is reeling under the stress of easing out Fisc deficit and increasing the revenues, sees this as an opportunity to cash in on the DTAA so much extent at least which is not being taken in the lighter vein by the FIIs.

Though not many major announcements are likely to be done during this month, yet the month is likely to attain significance due to the advance tax numbers that are likely to hit the streets from the next week onwards, when most of India Inc will come out with their numbers, thereby giving out the hint with regard to their Q4 and yearly numbers due to get annnounced from the second week of April.

The Technical charts after the range bound momentum on Mondays session are Indicating that the volatility is likely to continue for some more time, and the bulls needs to carefully watch out for the 5630 mark for their short term buys, which if cracked could mean that the Indices might tank to the 5500-5460 levels sooner or later in the days to come.

However given the current scenario where the Indices are largely oversold there might not be a major crack unless there is a Global setback for the equities market, and the chances seem that the 5750-5800 levels could be reached as a bounce back by the end of the week or fortnight at the max on the higher side but for that to happen the Indices need to hold the 5630 mark and crossover the 5730 levels in the 2-3 trading sessions……………..

(Inputs:Basket option Research bureau – Bangalore)


Team SMI


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