SMI Market View – 6th June

Posted By : Kishore B.S

Hi Friends !!!!

Our markets were largely flat yesterday and highly volatile for the day except the last hour of the trading session when some sparks flew and there was some positive upmove.
However it remains to observe that the upmove lacked the trendsetter mark and looked more staged due to some intraday shortcovering since any significant upmove or indication of further upmove marks with high volumes and spikes which were largely absent.
The technical charts have been depicting range bound momentum for the markets in the range of 5270-5330 and the indices have been hovering in that range for this entire week, the surprise rate cut by China and the expected Interest rate cut by the ECB have been discounted and mostly as I have been reiterating the markets seem to be eager for the Quarter Season begining next week for the move which largely would be the driving factor.
Also the Monsoon report alongwith the IIP numbers due next week could influence the markets to large extent and it would be largely advised to remain on sidelines or trade in small quantities unless this narrow range is taken off, which is just 60 points for handsome gains and good trading strategy.

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

Cheers!!

Team SMI

www.stockmarketinstitute.org

 

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