Stock Markets Uncertain About the Direction
Jul 08, 2013 | 11:39 AM IST
Jul 08, 2013 | 11:39 AM IST
The trend line support at 5566 levels assured about a time being bottom finishing for the stock markets. Nifty rose but resisted thrice at 5900 levels creating its own multiple resistance level within a single week. Nifty retraced nearly 50% of the downward move. Considering 5900 as the immediate resistance level, Nifty might correct more up to 5760 levels in the first place and 5700 further. We still maintain our major support to be at 5566 levels. However, the indicators and oscillators are not suggesting any clear breakdown; we can also expect an upward momentum up to 5970 levels initially and 6100 levels then.
The stock markets opened on a positive note and traded with a positive bias as a part of continuation of the upward movement. Realty was at the forefront of the move. The only NS& BSE sector that traded against was IT sector specifically Infosys, HCLTech and TCS. Second and third day experienced sell off to close lower nearly by 2.3%. It was 38.2% retracement of the positive move. Next day obviously traded on a bullish note to close higher by 1.14%. Last day traded optimistically up to 5900 levels and then experienced sell-off to close lower. Last week created a small rounding pattern within a single week itself.
With Rupee making new lows; recovery is looking remote possibility. Many micro developments are happening which can impact markets negatively. Crude oil and brent crude prices are on the rise. Rupee beyond 61 can cause considerable rise in primary commodities. Food Security bill if passed can add pressure to sovereign budget which can increase deficit. All counters will now be watching RBI : both for Rupee fall intervention and Interest rate policy which is due on 31st of July.
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