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Sunday, November 13, 2011

Mktviews Weekly Nifty Analysis (14/11/2011-18/11/2011)


Last Week, Market Sentiment got dampened on A/c of increase in Eurozone troubles with Italy being the New Debt Champion, Moody's downgrading the Indian Banking system & Sept IIP growth slumping to 2 Year Low. 

Further Fuel price Hike cannot be ruled out on 16th Nov meeting of OMC's due to continouous rupee deprieciation & rising crude prices. This inturn could fuel Inflation further & has a direct co-relation with Growth and Fiscal Deficit which may even be raised beyond 5% vs 4.6% projected earlier. 

Even Q2 results which reported hit in corporate profits due to High Interest cost pressures & Forex Loss have extended the selling pressure. 

Avoid Bottom Fishing & Reduce Long Positions on all rises as further fall is likely. 

Small Pullback upto 5420/5504 would be witnessed only if critical resistance area of 5290-5309 is crossed & Nifty Fut closes above it. 
If fails to cross abv 5309, will be in a trading range 5109-5309. 

Strong support lies @ 5110-5115 & Selling pressure would intensify upto 5003/4937 only if Nifty Fut breaches & closes below 5109. 

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