The Indian markets are ready to kiss the recent high, last week after touch the 31 month high sensex and nifty corrected to their immediate support level that stands between 5370 to 5390.The sell off triggered by the selling by FII on Thursday and Friday however the data was not so high because they sold of only 276.62 crore on Thursday and 108.16 crore in Friday. The second fear in the minds of market participants was the announcement of revised GDP data of US economy on Friday but fortunately which was surprised the US market to positive side by saying that US economy has grown in last quarter with 1.6%, earlier analysts were estimating that it will be less than 1.5%.
The third aspect is the statement of fed governor Ben Bernanke he is ready to support the economy when further negative sine will immerse ,above activity supported the US market and Dow closes up 164 point above 10105 and this is a good sign for Indian market. So the market is going to recover their losses in coming week and will scale new high.
Dollar index who is the indicator of behavior of US dollar against major currencies has retreated again and it reflecting that US dollar has started weakening again so this is good for equities. The coming equity rally is not going to be a strait northward move it will be bumpy ride from here onward. The chances of major correction up to 5100 is also looming by October end and once this leg of correction will be over then market will be ready for the sharp rally till year end.
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