We hate to do "We told you na...". On 6th Dec, we wrote Nifty will break 5000 and it did. Then on 13th Dec, Buy on every decline and 20th Dec, Invest now and reap in New Year. The market bounced back big time and broke all its resistances. Technically, the markets have closed above the Nifty 5150 resistance level during this current relief rally on back of good volumes, which is a positive sign. Other positives for the market are the ADX indicator that is improving and the DI+ sign is gaining strength. Even the RSI is moving above its average on daily charts, which is a positive sign.
Higher advance tax figures by India Inc which suggests better Q3 December 2009 results, would support the market. Volume would be low due to year vacation and a truncated week of just three trading days.
High food price inflation is a major worry for the policymakers as they contemplate a right approach to tame hike in inflation which seems to be more of a supply side issue. The next quarterly review of monetary policy is scheduled on 29 January 2010.
Indian Stock Markets would witness stock specific action amid occasional bouts of a volatile and choppy trend due to the derivative segment expiry. The markets would continue to take cues from the global markets and crude oil prices. Profit booking is suggested and avoid fresh longs. Happy New Year!
Higher advance tax figures by India Inc which suggests better Q3 December 2009 results, would support the market. Volume would be low due to year vacation and a truncated week of just three trading days.
High food price inflation is a major worry for the policymakers as they contemplate a right approach to tame hike in inflation which seems to be more of a supply side issue. The next quarterly review of monetary policy is scheduled on 29 January 2010.
Indian Stock Markets would witness stock specific action amid occasional bouts of a volatile and choppy trend due to the derivative segment expiry. The markets would continue to take cues from the global markets and crude oil prices. Profit booking is suggested and avoid fresh longs. Happy New Year!
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