SMI Indian Stock Markets Today

Posted By : Kishore B.S

Friends

 

Again Nifty had a gap up opening today. A part of that gap was covered during the day but still gaps remain. These gaps need to be covered in future. Nifty was trading in a very small range of 5440 – 5470 for the whole day.

 

The bank nifty was up 203 points in the anticipation of RBI decreasing repo rates tomorrow. This is highly unlikely as inflation is still above 6%. Inflation data due tomorrow is expected to be around 6.5 % which is still quite high. If RBI does not decrease the repo rate the bank shares will see a correction tomorrow taking the Nifty down.

 

The global mood is very positive. Dow, DAX, CAC, FTSE etc are up 1 to 1.5 % which is lending support to Indian markets. My view on the market is still cautious. The momentum can take the Nifty up to 5550-5600 but not more than that. So, the strategy should not be to go long but to initiate shorts at any level above 5500. Sit high on cash and short April contacts on each and every rise above 5500.

(Contribution: Mr. Subham Deva, Stock Market Institute Associate, IIT Kanpur)

Cheers!!

Team SMI

www.stockmarketinstitute.org

 

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