At a time when the Global markets are near 20-month high and are all set to continue the rally on the back of optimism over partial resolution of the US fiscal cliff concerns, Indian market is in a mood of caution. Swelling fiscal deficit, high inflation and elevated interest rates are the three major areas of concern for the Indian economy. Negative November IIP data on weak capital goods production and muted consumer demand, has cast a shadow of gloom on the market.
In the week gone by, both the major Indian stock market indices, Sensex and Nifty ended in negative zone after seeing a smart rally in the previous two weeks before the one that ended on 11th January. Oscillators in the daily chart are signaling a sell after displaying negative divergence in the previous week. This implies loss of momentum in the short-term and possible downward reversal. The weekly oscillators are still rising as the medium-term trend continues to be bullish.
Technically, the Nifty faces resistance at 6,020-30, while support comes at 5,930, which is the 20 DMA (day moving average). A close below this figure could see Nifty retrace to 5,860-70. The medium-term view for the Sensex remains positive, however it can correct up to 18,900 or 18,600. Medium-term view on the Sensex will turn negative only on close below 18,600.
Now all eyes are on the consumer price index (CPI) and Monthly Inflation for December 2012 which is due to be released, today. Optimism over a cut in the repo rate by RBI by at least 25 basis point will likely to keep the market afloat. After software major, Infosys surprised the markets by its spectacular earning number in the 3rd quarter, TCS, another software giant is all set to come up with its 3rd quarter earning number today and if it beats the market expectation, expect a smart rally in the market today.
Another figure reflecting optimism over Indian economy is the fact that Foreign institutional investors (FIIs) remained buyers of Indian stocks not only during the week, but also for the entire month as well.
Asian markets have opened the day with all round positivity. This means that the markets in India will also start with positive rally, but what is to be seen is how it digests TCS and WPI numbers by the end of the day’s trading.
In the week gone by, both the major Indian stock market indices, Sensex and Nifty ended in negative zone after seeing a smart rally in the previous two weeks before the one that ended on 11th January. Oscillators in the daily chart are signaling a sell after displaying negative divergence in the previous week. This implies loss of momentum in the short-term and possible downward reversal. The weekly oscillators are still rising as the medium-term trend continues to be bullish.
Technically, the Nifty faces resistance at 6,020-30, while support comes at 5,930, which is the 20 DMA (day moving average). A close below this figure could see Nifty retrace to 5,860-70. The medium-term view for the Sensex remains positive, however it can correct up to 18,900 or 18,600. Medium-term view on the Sensex will turn negative only on close below 18,600.
Now all eyes are on the consumer price index (CPI) and Monthly Inflation for December 2012 which is due to be released, today. Optimism over a cut in the repo rate by RBI by at least 25 basis point will likely to keep the market afloat. After software major, Infosys surprised the markets by its spectacular earning number in the 3rd quarter, TCS, another software giant is all set to come up with its 3rd quarter earning number today and if it beats the market expectation, expect a smart rally in the market today.
Another figure reflecting optimism over Indian economy is the fact that Foreign institutional investors (FIIs) remained buyers of Indian stocks not only during the week, but also for the entire month as well.
Asian markets have opened the day with all round positivity. This means that the markets in India will also start with positive rally, but what is to be seen is how it digests TCS and WPI numbers by the end of the day’s trading.
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