A STRONG RALLY WAS SEEN AFTER THE INFOSYS RESULTS AND POOR THAN EXPECTED IIP DATA AT 4.1%FOR THE MONTH OF AUGUST 2011. AS SUGGESTED NIFTY RALLIED ABOVE 5020 TO TOUCH 5110. ALL ROUND BUYING WAS SEEN IN I.T., CAPITAL GOODS, BANKING ETC. NIFTY SHUT SHOP AT 5099.40, UP BY 125.05 POINTS, AFTER TOUCHING THE TOP OF 5109.80, JUST BELOW THE RESISTANCE LEVEL OF 5110. SENSEX CLOSED AT 16958.39, UP BY 421.92 POINTS. IN ALL MARKET BREADTH WAS POSITIVE AND BOTH MID-CAP AND SMALL-CAP INDEX WERE CLOSED IN GREEN BY MORE THAN A PERCENTAGE. MARKET RALLIED ON THE EXPECTATION THAT THE POOR IIP DATA SHOWS THAT THE IMPACT OF CONTINUOUS RATE HIKES HAVE NOW STARTED BEING FELT IN THE ECONOMY AND THIS COULD EVENTUALLY CALL FOR HALT IN THE INTEREST RATE HIKE IN NEXT POLICY MEET OF RBI ON OCTOBER 25TH, 2011.
GOING FORWARD, NIFTY MIGHT TEST 5120-5170 WHERE THERE IS STRONG RESISTANCE. IF NIFTY MANAGES TO CONTINUE ABOVE 5170 THEN 5230 AND 5330 MAY BE THE NEXT TARGET. BUT ONE MUST NOTE THAT IF THE CUES ARE DISTURBING THEN NIFTY MIGHT TAKE RESISTANCE AT 5230 LEVELS. HENCE KEEP EYE ON THE RESISTANCE LEVELS.
ON THE OTHER HAND IF NIFTY FAILS TO SUSTAIN 4970-4950 THEN THE CURRENT RALLY WOULD TERMINATE AND THEN NIFTY WILL TAKE NEAREST SUPPORT AT 4800, WHICH IS THE LEVEL TO GO SHORT. HENCE NOW ALL LONGS SHOULD BE KEPT WITH A STOP-LOSS OF 4970-50.
FOR TODAY: NIFTY HAS SUPPORT AT 5060 AND RESISTANCE AT 5110. IF NIFTY HOLDS ABOVE 5110 THEN 5170 AND 5230 WILL BE SEEN AND FAILING TO HOLD 5060 WILL RESULT IN FALL TILL 5020 AND THEN TO 4970.
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.
Disclaimer:
This is neither an offer nor a solicitation to purchase or sell securities. The information and views contained on this blog are believed to be reliable, but no responsibility (or liability) is accepted for errors of fact or opinion. Writers and contributors may be trading in, or have positions in the securities mentioned in their articles. Neither I (Vikas Srivastava) nor any of the contributors accepts any liability arising out of use of the above information/article. Reproduction in whole or in part without written permission is prohibited.
GOING FORWARD, NIFTY MIGHT TEST 5120-5170 WHERE THERE IS STRONG RESISTANCE. IF NIFTY MANAGES TO CONTINUE ABOVE 5170 THEN 5230 AND 5330 MAY BE THE NEXT TARGET. BUT ONE MUST NOTE THAT IF THE CUES ARE DISTURBING THEN NIFTY MIGHT TAKE RESISTANCE AT 5230 LEVELS. HENCE KEEP EYE ON THE RESISTANCE LEVELS.
ON THE OTHER HAND IF NIFTY FAILS TO SUSTAIN 4970-4950 THEN THE CURRENT RALLY WOULD TERMINATE AND THEN NIFTY WILL TAKE NEAREST SUPPORT AT 4800, WHICH IS THE LEVEL TO GO SHORT. HENCE NOW ALL LONGS SHOULD BE KEPT WITH A STOP-LOSS OF 4970-50.
FOR TODAY: NIFTY HAS SUPPORT AT 5060 AND RESISTANCE AT 5110. IF NIFTY HOLDS ABOVE 5110 THEN 5170 AND 5230 WILL BE SEEN AND FAILING TO HOLD 5060 WILL RESULT IN FALL TILL 5020 AND THEN TO 4970.
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.
Disclaimer:
This is neither an offer nor a solicitation to purchase or sell securities. The information and views contained on this blog are believed to be reliable, but no responsibility (or liability) is accepted for errors of fact or opinion. Writers and contributors may be trading in, or have positions in the securities mentioned in their articles. Neither I (Vikas Srivastava) nor any of the contributors accepts any liability arising out of use of the above information/article. Reproduction in whole or in part without written permission is prohibited.
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