Hello,
With expiry around the corner, RBI Credit Policy had not much of a impact on the markets save for a intraday swing high which got taken out before we closed for the day. While Nifty still remains above the crucial 5400 level, its becoming increasingly tough to believe that the market has the momentum to continue its upward march unless we shake off the lethargy & move sharply above the 5475 level.
There are 2 other things that has happened which has to be taken note of. After 13 consecutive days of buying, FII's sold a bit yesterday. While the amount is very small, it does make a difference. Add to it the fall of Gold. Gold's fall overnight is one of the strongest in recent times. A fall in Gold can point out to two reasons - Case One - Fear is subsiding - Case Two - liquidity contraction maybe starting to happen. If its the first scenario, Gold should fall where as equities should rise and in case its the Second scenario, all asset classes should and fall. As of now, it seems that the second scenario is unfolding.
A break of 5400 on Nifty should be taken as a first move of a reaction. How large the reaction will be will of course depend upon multiple other factors that are not taken into account currently.
Regards
Prashanth
Mythri Stocks & Shares Pvt Ltd.,
No comments:
Post a Comment