The market opened flat yesterday and remained range bound till mid afternoon when hectic buying in front line stocks like Reliance, L&T, ONGC, and ITC were noticed which turned the market sentiment buoyant resulting in short covering by bears. The afternoon rally is also attributed to positive European markets coupled with higher US index futures. Meantime, fall in annual food inflation which eased to 16.12% in the week ended 5 June 2010, compared to previous week’s annual rise of 16.74% also aided the market sentiment. The fuel price index climbed 13.18%, lower than an annual rise of 14.23% in the previous week. Nifty closed the session yesterday at 5274 gaining 41 points, a few points off the day’s high of 5285. Market participants will keenly watch the outcome of AGM of Reliance today which may unveil various interesting future plans related to telecommunications, power, finance etc. It is advised to trade with caution till a clear market trend emerges.
Nifty future will retain its up move if it trade and remain above 5302 whereby it may move further to 5329/5358. Strong support for the NF at 5254 which if breached decisively with volumes then NF may slide to 5233/5208. Initiate the longs in nifty future above 5300. Those traders who already has the long position in Nifty future could hold it with the sl of 5205.
CAUTION IS ADVISED FOR TODAY AND TILL THIS EXPIRY AS YESTERDAY'S RUMOUR ON ICICI BANK WAS JUST A TRAILOR AND THIS TYPE OF RUMOUR MAY ATTACKS MARKET SENTIMENT JUST TO ADJUST THE BEARS TO EXIT/COVER FROM THEIR HUGE SHORTS TAKEN EARLIER.
BETTER TO STAY FROM TRADING OR SIT SIDELINE, WATCH AND GAIN EXPERIENCE.
Disclaimer: No holdings except some long in cash segment taken earlier.
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