SMI-Market View – 12th September 2011

Posted By : Kishore B.S

Our domestic markets and Indices remained largely resilient yesterday awaiting eagerly the IIP data to be released today and the likely implication of it coupled with the inflation data to be released on Friday on the policy action of RBI during its meet next week.
The domestic market suddenly seems to be gripped with some positive hysteria that some positive news push could soon be in the offing after the lull for quite some time now.
The first could be the most anticipated hike in Petroleum prices, thereby signally the reduction in the Budgetary Deficit and maintaining it around the 5.1% mark, the second could be some reformatory announcements to bolster the Economy.
The third and the most critical could be the cut in Interest rates to some extent thereby reducing the funding cost of the corporates and trigger some investments.
The charts are Indicating that the Upmove is not yet over and some more upside cannot be ruled out if the 5350 levels is held. The Indices are likely to face resistance at the 5400-5428-5448 levels which if breached could lead to further rally to the 5500 mark easily.

The IIP numbers to be released holds the key for our markets today which could swing the markets to the 5450 mark or on the profit booking mode to the 5350 levels.

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

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