As I write this market view its give me immense pleasure and happiness that we are witnessing the highs made during the months of March which was around the 5600 mark.
Yesterdays much anticipated Bernanke statement to support the US economy with his dramatic speech spiralled the US markets to touch new multiyear highs not seen since the year 2008.
On the backdrop of this the Global markets are trading at highs right from Japan to our markets and further to the European markets. This Global news of releasing funds into the economy at almost zero interest rates till the year 2015 by the FED is expected to keep the Economy from the brink of disaster by bolstering most of the factors.
Coming back to the Domestic front the UPA II finally bit the bullet by raising the diesel prices by Rs. 5 and also cutting the subsidy by nearly 3/4th.
This policy action by the Govt is likely to cut the fiscal deficit by a large extent which was under strain due to the Increase in fuel subsidy.
The charts as suggested yesterday showed that the upside is likely to continue and this would come true today and it remains to be watched if the markets hold above the crucial 5500-5550 mark for today which if held could take the Indices to the 5600-5630 levels easily.
(Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)