From 5303.55 to 5538.75, NIFTY gained almost 235.20 points and ended in Green last week on Friday (04th March 2011) at 5538.75 gaining almost around 4.43% as compared to the last week’s closing of 5303.55. It was a four day trading session last week. NIFTY mainly witnessed a move affected by Indian Union Budget 2011-12 and Libyan Tensions. Post Budget Rally and Good Sales Numbers from AUTOs led the market in the positive zone. A bit of value buying was also witnessed in the INFRA Stocks. Also BANKING, FINANCE, PSUs and CAPITAL GOODS Sectors witnessed a Buying Interest, all this led NIFTY to the week’s high of 5608.20. Even a bit of Buying Interest was witnessed from FIIs (Foreign Institutional Investors). NIFTY continuously crossed all its important resistance levels for the week by making a high of 5608.20, at the same time it made a low of 5308.60 and closed at 5538.75.
Last Week, Net Buying of Rs. 1193.19 Crore by FIIs and of Rs. 278.76 Crore by DIIs was witnessed in the Cash Segment.
Technically, NIFTY has made a Long White Candlestick, which tried to engulf the last week’s candle completely, but could not do it successfully. 5600 is a Crucial Resistance for NIFTY to cross on the closing basis, which proved right for the second time. Three weeks ago too NIFTY tried to cross the same level and reverted sharply by making a high of 5599.25. It has turned above its 20-Days EMA of 5465.53. NIFTY has closed above the last week’s closing, signaling a bit of pullback still left to come. NIFTY tried to cross its 40-Days EMA (Exponential Moving Average) of 5608.20, but could only make a high of 5608.20 and closed at 5538.75 (much below the 40-Days EMA).
Markets were eagerly waiting for the RAIL BUDGET and the UNION BUDGET, even though the Government is blotted by many Corruption Cases. As expected, not much positive announcements were made by the Finance Minister for the India Inc. Budget was more focused on Common Man and on FIIs. If any sector is considered, only INFRA Sector was more in focus. Also, Government targeted the Disinvestment of ` 40000 Cr. FIIs are now also allowed to invest in Mutual Funds and Corporate Bonds, besides the Equity Segment.
Unless, NIFTY gives a positive closing above the levels of 5650, Investors are suggested to avoid making investment in the Markets right now and wait for the right direction for the market and Traders are suggested to trade with the market trend in the markets by following Strict Stop Losses.
If a look at International Markets is taken, majority of the Asian Indices have retraced back from their important resistance levels after touching them, raising the expectation of more of a correction in next coming weeks. On the flip side, both the European and American Indices have crossed their important resistance levels and have become bullish for the next week.
On the Global front, in ASIA, China's National People's Congress will take the Asian spotlight. Investors will also see Cathay Pacific's earnings, data on core machinery orders from Japan, and interest-rate decisions from South Korea and New Zealand. INDIA will be announcing its Jan 2011 IIP Data too on 11th March 2011. In EUROPE, Havas, EADS and a batch of U.K. insurers will report their earnings. Bank of England is going to unveil its latest interest-rate decision on Thursday. In US, After some encouraging same-store sales numbers, investors will look to the government's retail-sales report due March 11 to confirm the upbeat news.
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