Posted By : Kishore B.S
Nifty opened today with a positive gap and eventually touching a high of 5039 which was largely
driven by rupee appreciation and reduction in the trade deficit that stood at USD 13.4 billion. The
RBI directive to EEFC account holders to convert 50% of their Forex earnings into Rupees within two
weeks, lead to the appreciation of INR against USD and market maintained a positive bias.
But the positive streak failed to hold in due course of the day, with negative news flow emanating
the sentiments continued to drag the market downward with selling dominating the market once
The Wavering European markets influenced the post lunch session along with the slew of Negative
news flow of Analysts about the temporary downtrend in the Indian markets to 4800 levels with
some even predicting much lower levels witnessed during the months of December around 4600
On the Asian front, China disappointed most of the Analyst expectation about its exports which
showed a growth of 4.9 %, much lower than the expectations of 8.5%.
Though the markets closed on a small negative note reflecting similar signs of Negativity yet the
Nifty discount and premium wavering shows that most of the traders and investors mindset has
shifted to negative and gloom phase which could be silver lining for some positive activity and
sentiments which could lead to some positive recovery to 5080-5100 levels, as long as the support
level of 4948 is not broken which needs to be watched.
(Inputs: Mr. Shiv Teja & Mr. Bhavesh, Associates – Stock Market Institute, Bangalore)