The markets were anxious to accept the stimulus package both from the Govt. and from the RBI for quite some time. The final count down of parliament elections begins once the count done completes for the state assembly results.
The global slow down relaxed the emerging markets oil burden and provided time to consolidate the growth progresses. The economic foundation of country like India is strong but needs external propeller to generate growth stimulus, until then we have to consolidate on internal resource and consumption.
The markets will consolidate until such time with a band of 20%+. The regular reader will notice the same was expressed log back and it continued till date. The sell-off at this point in time can happen on individual stock but not on the Index as a whole. The reverse is true for the rise.
The Nifty has made a decent bottom building process at 2600-2750 level for the last three weeks can go up from here but not as a rally. The challenge at this point is that the Nifty has to trade above 2750 and the high shall pierce the resistance at 2835-40 range. The Bulls got some relief signal to accept more risk to invest. This opportunity shall reflect tomorrow in the stock prices.
The SBI has strong resistance at 1220-40 level and it shall try to close above 1230 level to give confidence. The ICICI bank ADR shown nearly 10% rise on Friday night, a day in advance shall close above 371-73 level. The recent laggard of banking giant HDFC Bank has to cross the resistance at 940 level and close above 921-23 level will ensure that the markets accepted the stimulus package announced.
Sunday, December 07, 2008
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment