SMI-Market View – 10th September 2011

Posted By : Kishore B.S

After the initial hiccups and sell off which was witnessed last week followed by huge volatility swings in the markets the Indices finally moved up to cross the pivotal resistance level of 5300 on Fridays session due to the Super Mario Effect.
The much awaited decision by Mario Draghi the Chairman of ECB who is popularly known as Super Mario due to his commitment towards bolstering the European Economy signaled perpetual bond buying.
This action is a signal clearly towards bolstering the Economic growth allaying fears of any sovereign downgrades and defaults by any nation to fund their plans.
Our markets also rubbed shoulders with this positive policy action sending the Indices above the 5300 mark and to follow up the Saturdays special live session also supported the markets making the Indices cross the 5350 mark too, which is a clear sign of the bullish rally to ensue.
Now with the Indices hovering above the 5300 mark and near the 5350 mark, if these levels hold then we could easily witness further upthrust towards the 5400-5450 mark which are the previous highs and resistance levels to watch out for.

For today the Indices might witness some volatility and can be utilized to create some fresh long positions if the 5300 levels is held….

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


Team SMI

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