SMI Market View – 14th June

Posted By : Kishore B.S

Hi Friends !!!!!

 The markets remained largely resilient yesterday ahead of the key inflation numbers today, which is likely to set the tone with regard to the rate cut expected by the market participants. The Inflation numbers to be released today, which is the first after the recent hike in Petrol prices last month is expected at around 7-7.6% and is likely to give the quantum of the rate cut that the RBI could indulge into.
The Economy which is already reeling under the lack of Growth and Policy reforms from the Govt to bolster the growth has been pressuring for an aggressive rate cut to bring back the Growth story which has been suffering from one of the Higher interest rates in the world.
The charts also yesterday marked that the markets are near their resistance ZOne of 5120-5140 which has not been successfully taken off, giving the cautious note that if the same is breached could lead the indicates back to the next hurdle of 5240 and even 5300 levels as per the FLAG pattern suggested yesterday and on the bearish note if the support level of 4980 is broken could lead the the sell off further down to the 4800-4600 level in the days to come.
Unless the levels written above are taken off on either side the direction is likely to be neutral and it would be ideal to wait and take the positions accordingly.

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


Team SMI

Leave A Comment