Markets are poised crucially after staging a fantastic upmove from 4800 to 5200+ levels in a fortnight backed by stable global cues, strengthening of Rupee from sub 54 till 49.4 levels vs Dollar & heavy short-covering post 50 basis point cut in CRR by RBI.
CRR cut of 50 bps by RBI from 6% to 5.5% in its 3rd Quarter review of monetary policy 2011-2012 has resulted in an injection of primary liquidity of Rs 32,000 crore in the banking system while maintaining status-quo w.r.t Repo as well as Reverse Repo rates. Meanwhile, baseline projection of GDP growth for 2011-2012 has been cut to 7% from earlier estimated 7.6%.
Indian Markets closed 3% up on week on week basis with mid-caps closing 3% higher, bankex 4.3%, Metal, IT & Auto Index all up by 4%.
Market participants would now keep an eye on upcoming Q3 results i.e LIC, PNB, ICICI Bank, IDBI, Siemens, ONGC, HPCL, etc & hence stock-specific actions may be witnessed.
Auto & Cement Sector stocks will be in focus as companies from these 2 sectors would start unveiling their monthly sales data for Jan 2012 from 1 Feb 2012.
Nifty Futures has crossed major hurdle of 200 EMA but has not yet managed to cross & close above the deciding level of 5240 (Spot) which is 200 DMA.
The current rally has been too swift on the back of heavy short-covering. Hence, markets could now take a breather & Nifty may trade side-ways & retrace upto 5086-5100 area once & if it holds, may bounce back till 5340-5420 area. In other words, markets needs a healthy correction before the start of fresh upside.
Going forward,
Nifty Futures will face high resistance around 5290-5309 area crossing & sustaining above which it will be bullish upto 5420/5500++ area.
If fails to cross abv 5309, Will trade in 5086-5309 range.
Strong support has been formed around 5086-5100 area & breaking and closing below 5086 area, levels of 4990/4865 may be retested.
Regards,
Team Market View Investments.
Mo : 9987750901.
Visit www.mktviews-nifty50.blogspot.
Facebook : www.facebook.com/mktviews.
Never Forget : There are no Speed Limits on the Road to Excellence !!!
CRR cut of 50 bps by RBI from 6% to 5.5% in its 3rd Quarter review of monetary policy 2011-2012 has resulted in an injection of primary liquidity of Rs 32,000 crore in the banking system while maintaining status-quo w.r.t Repo as well as Reverse Repo rates. Meanwhile, baseline projection of GDP growth for 2011-2012 has been cut to 7% from earlier estimated 7.6%.
Indian Markets closed 3% up on week on week basis with mid-caps closing 3% higher, bankex 4.3%, Metal, IT & Auto Index all up by 4%.
Market participants would now keep an eye on upcoming Q3 results i.e LIC, PNB, ICICI Bank, IDBI, Siemens, ONGC, HPCL, etc & hence stock-specific actions may be witnessed.
Auto & Cement Sector stocks will be in focus as companies from these 2 sectors would start unveiling their monthly sales data for Jan 2012 from 1 Feb 2012.
Nifty Futures has crossed major hurdle of 200 EMA but has not yet managed to cross & close above the deciding level of 5240 (Spot) which is 200 DMA.
The current rally has been too swift on the back of heavy short-covering. Hence, markets could now take a breather & Nifty may trade side-ways & retrace upto 5086-5100 area once & if it holds, may bounce back till 5340-5420 area. In other words, markets needs a healthy correction before the start of fresh upside.
Going forward,
Nifty Futures will face high resistance around 5290-5309 area crossing & sustaining above which it will be bullish upto 5420/5500++ area.
If fails to cross abv 5309, Will trade in 5086-5309 range.
Strong support has been formed around 5086-5100 area & breaking and closing below 5086 area, levels of 4990/4865 may be retested.
Regards,
Team Market View Investments.
Mo : 9987750901.
Visit www.mktviews-nifty50.blogspot.
Facebook : www.facebook.com/mktviews.
Never Forget : There are no Speed Limits on the Road to Excellence !!!
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