MARKET VIEW FOR 21ST JUNE 2011

INDIAN MARKETS MARKED THE HIGH DRAMA ON THE CONFUSION REGARDING THE INDO-MAURITIUS TAX TREATY. EVEN AFTER THE CLARIFICATION FROM THE GOVERNMENT MARKET CLOSED WITH A LOSS OF ALMOST 2%.BSE CLOSED AT 17506.63(DOWN 363.90)& NIFTY CLOSED AT 5257.90(DOWN 108.50).THIS PANIC BUTTON WAS TRIGGERED THE MARGIN CALL AND AT TIME THERE WAS A COMPLETE PANIC AMONG TRADERS AND PARTICIPANTS.MOST OF THE ANALYSTS ARE BEARISH IN THE MARKET AND THERE EXISTS PESSIMISM AND UNCERTAINTY ON VARIOUS DOMESTIC AND GLOBAL FACTORS.

AS SAID YESTERDAY,MARKETS MAY FIND SUPPORT BELOW NIFTY 5300 THE OVERSOLD MARKETS WILL SEE BOUNCE BACK & RECOVERY WITH BANKS WHICH SEEM TO BE RESILIENT TO THE OVERALL SENTIMENTS. 

RANGE FOR THE NIFTY TODAY IS 5230-5350(SPOT LEVELS).IF NIFTY SUSTAINS BELOW THIS RANGE THEN NIFTY WILL FIND SUPPORT AT 5196 AND THEN AT 5177 ON THE OTHER HAND IF THE NIFTY SUSTAINS ABOVE THE RANGE THEN 5390-5410 SHALL BE RESISTANCE. IT SHOULD BE NOTED THAT ANALYSTS BELIEVE THAT 5200 SHALL NOT BROKEN VERY EASILY AND NIFTY SHALL BE IN NEW RANGE OF 5200-5400.

IMPORTANT NOTE:THERE IS CONSENSUS AMONG THE ANALYSTS THAT MARKETS WILL LOOM UNDER THE GLOBAL & DOMESTIC UNCERTAINTIES,THERE REMAINS THE RISK OF BREAKDOWN. SENSEX AND NIFTY MAY BREAK BELOW 5000 AND FINALLY MOVE TOWARDS 4600. THIS MAY HAPPEN ANY TIME. HENCE TO TRADE AT THIS TIME SHALL RESULT IN LOSSES DUE TO VOLATILITY.JULY -AUGUST-SEPTEMBER SHALL WITNESS A SOUTH WARD JOURNEY IN INDICES, IF THERE IS POOR MONSOON, RISING INFLATION, HIKES IN INTEREST RATE BY RBI, CRACK DOWN IN U.S AND EUROPE, FAILURE OF GREECE AND OTHER COUNTRIES,SHARP RISE IN CRUDE OIL, AND POOR Q2 NUMBERS BY CORPORATE. 

STRATEGY FOR THE OPTION PLAYERS: BUY CE5200 & CE5300 FOR 3-5 DAYS HOLDING.NIFTY MAY BOUNCE BACK TO 5400 LEVELS SOON,BEFORE THEY START DROPPING AGAIN.

ASTROLOGICALLY:MARKETS WILL RECOVER,ANY TIME FROM TUESDAY AND AFTERWARDS.THE NEXT BIG JOLT OR DOWN LEG IN THE MARKETS WILL BE SEEN AFTER SOLAR ECLIPSE ON 1ST JULY.NIFTY WILL TANK BELOW 5000 & SENSEX BELOW 17000.

Safe Harbor Statement:
Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.Nothing in this article is, or should be construed as, investment advice.

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