The markets are fighting for their survival as the Bull Run took a beating at the bourses due to US internal problems. The markets will take considerable time to resume their upward move. (Pls.read my earlier write ups.---the range suggested at 5250-6290 but the high touched at 6347). The game plan of the operators are very clear that they took the Sub-prime issue for more than 6-months so that the retail investor forget. I warned that the sub-prime issue is much bigger than what they pronouncing.
Now the long period of consolidation is good opportunity to traders as they can get in and get out at every 12-15% rise and fall. The earnings will be good to the Indian industry as the consumer demand and the economic growth continue to flourish. The markets likely to test the bottom at 5192-5226 at the worst scenario but this will happen only if the Nifty fails to cross 5935 before the end of Jan-FO series.
The markets likely to get support at 5670 level as first support and if trades below that level then the support at 5445-15 level at the October-07 level. So long the Reliance stays above 2630-50 level, ICICI stays above 1135-29 level and the ONDC stays above 1090-1110, SBI stays above 2020 and the Bharti stays above 810 level the markets enjoy the bulls support. This correction is a measure to MFs & FIIs to save themselves from the Mid-cap trap happened at 2005.
Sunday, January 20, 2008
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