Posted By : Kishore B.S
Hi Friends !!!!!
Our markets remained resilient again yesterday inspite of the positive Global newsflow emanating out of the US markets especially the Fed statement on the Stimulus Issue leading to the rally in the Global markets.
This resilience of our markets and the indices to crossover the hurdle of the Gap created on the back of positive global newsflow indicates that the Rally is unlikely to happen soon, since there is the pure economics in play that is too much of supply on higher levels than the participants can actually demand or buy.
Yesterday our Indices opened with small gaps and the profit booking or resilience witnessed during the later part of the day indicate that the this lower gap created could be soon filled up and the directional course of our markets would remain undecided for this week since today is the weekend.
Next week would be the watchout event where the rally could happen due to the impending Govt measure which might be announced to support the faltering economic growth or the Kicker by the RBI of any clues on rate cuts.
Or the markets might rally on the back of better guidance by some more corporates for this season and the current financial year, which could take the Nifty above the 5260 levels signally the buying trend with likely targets of 5340-5400-5440 which has been pending for longtime or could signal significant sell off by dipping below the support level of 5190-5160 indicating lower levels of 5050-4900 in the days to come.
Given the above statements it would be ideal to watch for the trend and trade accordingly.