Posted By : Kishore B.S
Nifty opened up 40 points but gave away all the gains by the time it closed down. Today everyone was expecting a run away rally but that did not happen. There were plenty of positive cues – RBI cutting rate, Europe, US and Asian markets were up 1 to 2 %. Nifty did break 5300 but could not break 5340 even once. RBI cutting repo rates was the most positive news that could take the markets up but that did not happen.
Europe is down today and so will be US. Two big companies came out with their results today – HCL Tech and HDFC. Both were better than expected and even that could not take the markets up. The gains could not be sustained.
This shows weakness in the markets. When market was not able to break 5340 shorts should have been initiated. All longs should have been exited today. Tomorrow we are having 2 year Spanish bond sales which will show how investors are looking to debt ridden Spain. This will guide the markets tomorrow. Markets might correct tomorrow. The gaps which are created might get filled this week.
(Inputs Mr. Shubham Deva, A Stock Market Institute Associate. IIT Kanpur)