CLOSING OUTLOOK


After a brief downtrend, corrective uptrend of Sensex likely to continue…

Sensex opened with the gapdown of 350 points at 18,012 and intraday fall was continued till 17,444. The level of 17,450 is 38.2% retracement from the recent bottom of 15,332 up to the Friday’s high18,406. Still the intermediate trend of Sensex is in downward direction and the on going corrective uptrend will try to test the zone 18,800 – 19,900. The upward trend reversal level is placed at 19,500 on closing basis and until this level is breached upwards, the buying positions are not recommended. The downward trend reversal level is maintained at 16,900 (closing) and the sharp downward swing may be seen after breaching this level.exiting the long positions as the current corrective uptrend may fizzle out.

This week there is a FnO expiry also on Thursday. And tomorrow RBI will announce its credit policy. We think market is not in hurry to retest its previous high. Will range bound some week. Remember MAy2006, It was range bound for nearly 8 Weeks.


OPENING OUTLOOK


We believe that tomorrow market will open up as US market in currently is in Green. But tomorrow all will be in hands of RBI ( RESERVE BANK of India) as they are going to announce a Credit Policy. And market is expecting a 25 BPS cut in rates. If this happen market will fly as rocket. We also believe that RBI will cut interest rates.


But Dont forget day after tomorrow is the last day of Expiry of this Future and Option series. Should people rollover their positions.. or book losses. This is the biggest question.


thanks

Abhishek

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