SMI – Market Outlook for 3rd October 2012

Posted By : Kishore B.S

As I write this view today on Account of the 143rd Gandhi Jayanthi, and compare it with the ongoing events on the Political front it really amazes me as to the scenario which are almost the same. During those days the mahatma made protests for the Liberalisation of the Country and today we are protesting for furthering liberalisation of the Economy which are contrasts.
The Indian Economy has come a full circle today with most of the Sectors of the Economy being Liberalised excluding just the Defence and the Sugar Sector for the time being. The Retail and Aviation Sector which were long being pending has been liberalised during the last fortnight due to which the last leg of the Reforms pushed the Markets to current new highs.
Based On this scenario today, the charts are Indicating that the markets are at the point of influx where the direction of the future course of action is likely to be scripted. Given the closing of the Indices above the 5700 mark and close to the pivotal resistance of 5730 and move above this level could trigger the stoplosses and push up the Indices to the 5800 levels which has not been seen for the last 1.5 years and create new Highs further towards the 5890 levels.
On the lower side the support of 5650 is critical to be watched out for which if broken could drag the Indices to the 5450 levels which is the trendline support zone for the current uptrend.
On the back of the reforms and Global cues it looks like that the markets would remain positive tomorrow and that the 5730-5750 mark could be easily breached giving a target of the 5800 by this weekend and hence it would be ideal to be buyers but on the sectors that have not done relatively well during the rally could gain momentum and outperform the blue chips is all that remains to be said…..
(Inputs Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)
Team SMI

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