In the absence
of any major guiding factors, the market is more likely to remain flat and
range bound today. No major upside or downward trend is expected. Even global markets remain range bound, as wall street gets small lift
from technology and McDonald's. Asian markets is aloso trading with small gains
apart from Japan. As technical data and technical chart suggets, that the market is in over
bought position, so no major upward trend will not be noticed, however any
negative news may pull down the Sensex.
Some of the factors which will have its impact on the market today and in
days to come, includes as to how the government responds to the BJP-led
Opposition’s attack on government after lobbying disclosure report filed by
Walmart revealed it had spent a massive $25 million lobbying to get entrance into India.
If opposition continue to disrupt the parliament and government fails to
introduce the much-hyped Banking
Amendment Bill, market will get negative signal and move downward. Also,
reports that RBI is most likely to keep policy rates unchanged at its
mid-quarter monetary policy review next week on 18th December will
in no way boost the market sentiment and the over-bought market will end up in
negative zone.
Thus, this is probably not the correct time to go long. However, one can
buy on declines. Past experience suggests, that a market without a guiding
principle and trading range-bound, is most likely to move down in short term
before moving up.
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