Hi,
So yesterday was much awaited day for our market as Rate cuts hopes keep market speculating.
We had a nice gap down in the morning which was in sync with U.S indices almost falling more than 3% each. So a gap down was obvious in sync. Interestingly whenever market falls analyst give different reasons for it to make it look quite obvious to their logics, like I came to read an article of ET here link. I would like to quote an extract for those who don't want to go by link -
"Accounting norms have been tweaked to permit zombie banks to pretend they are alive and solvent. The hope is that the public will swallow this fiction, animal spirits will revive the economy, and the consequent growth of bank profits will eventually suffice to write of the toxic assets. Very optimistic!"
btw article is very interesting to read do check it out.
So here we go, for every fall reasons like these and many in the articles can be taken for reference. Now its a matter of time how market give its own verdict on the policies and rescue measures. Interestingly dow recovered today closing at above 7900 keeping hopes alive.
On our Nifty front too a sort of same thing is going on. People haven't abandoned the hopes as market did rallied after rate cut news, but results were mixed as RBI cuts rates on repo and reverse repo but CRR one of the major rates was unchanged. We had a gap down opening and the gap was nicely filled up in the day as I discussed at iCharts shoutbox. Amid mixed reactions we peaked 3400 and managed to close down at 3365. Now an important suppord did held today which was 3300 (multiple support I must say - trend line, open interest and fib suuport of 38.2%). So as my last blog goes Nifty retraced more than 23% but candle still shows that its not in a hurry to move either downwards. Upper channel of Nifty is still intact but Open interest which is built up for the first time on 3400 and 3500 calls are giving clear signal that we might end up in 3200-3500 range as nothing major is happening. Q4 earnings are a bit of mixed bag as Infosys gave the indication that I.T front will be gloomy but TCS and some other software companies defied it amazingly reason may be their hedging policies, but yes they beated the market expectations. Hero Honda declared its results post closing and was in line with expectations. So on Automobile front we can be damn sure that they will post good results and same things can be expected from our Oil majors like Reliance and ONGC. Now its highly debated whether crude is breaking out or not but still these companies are performing better and expected to post decent results atleast better than their last quarter. Remember last time market didn't broke out on Reliance results and now this time its all good winds so a decent profit figures could cheer up the market as it is for the look out of anything good. So retesting of 3500 can't be denied at the month end and ofcourse yes we have our monthend fest named "Short Covering" which will be interesting to see. Till then lets see how volatile can market go.
Hope you loved reading it.
Happy Trading.
So yesterday was much awaited day for our market as Rate cuts hopes keep market speculating.
We had a nice gap down in the morning which was in sync with U.S indices almost falling more than 3% each. So a gap down was obvious in sync. Interestingly whenever market falls analyst give different reasons for it to make it look quite obvious to their logics, like I came to read an article of ET here link. I would like to quote an extract for those who don't want to go by link -
"Accounting norms have been tweaked to permit zombie banks to pretend they are alive and solvent. The hope is that the public will swallow this fiction, animal spirits will revive the economy, and the consequent growth of bank profits will eventually suffice to write of the toxic assets. Very optimistic!"
btw article is very interesting to read do check it out.
So here we go, for every fall reasons like these and many in the articles can be taken for reference. Now its a matter of time how market give its own verdict on the policies and rescue measures. Interestingly dow recovered today closing at above 7900 keeping hopes alive.
On our Nifty front too a sort of same thing is going on. People haven't abandoned the hopes as market did rallied after rate cut news, but results were mixed as RBI cuts rates on repo and reverse repo but CRR one of the major rates was unchanged. We had a gap down opening and the gap was nicely filled up in the day as I discussed at iCharts shoutbox. Amid mixed reactions we peaked 3400 and managed to close down at 3365. Now an important suppord did held today which was 3300 (multiple support I must say - trend line, open interest and fib suuport of 38.2%). So as my last blog goes Nifty retraced more than 23% but candle still shows that its not in a hurry to move either downwards. Upper channel of Nifty is still intact but Open interest which is built up for the first time on 3400 and 3500 calls are giving clear signal that we might end up in 3200-3500 range as nothing major is happening. Q4 earnings are a bit of mixed bag as Infosys gave the indication that I.T front will be gloomy but TCS and some other software companies defied it amazingly reason may be their hedging policies, but yes they beated the market expectations. Hero Honda declared its results post closing and was in line with expectations. So on Automobile front we can be damn sure that they will post good results and same things can be expected from our Oil majors like Reliance and ONGC. Now its highly debated whether crude is breaking out or not but still these companies are performing better and expected to post decent results atleast better than their last quarter. Remember last time market didn't broke out on Reliance results and now this time its all good winds so a decent profit figures could cheer up the market as it is for the look out of anything good. So retesting of 3500 can't be denied at the month end and ofcourse yes we have our monthend fest named "Short Covering" which will be interesting to see. Till then lets see how volatile can market go.
Hope you loved reading it.
Happy Trading.
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