As predicted midcap and small cap stocks were in lime light while both Sensex and Nifty lost less than a percentage week on week. Markets were trading range bound with weak bias amid mixed global clues. PSU Oil Refining and Marketing companies were the major gainers during the week after the announcement of deregulation of fuel prices. BPCL, IDFC, Reliance Power and ONGC were the top Nifty gainers while Cairn, GAIL, Jindal Steel, Sterlite, Hindalco and Tata Steel were among the major losers.
The global markets are mixed and we can expect a flat opening in our markets. The global markets don’t look too rosy as the economic data emanating from US and Euro Zone doesn’t give any hopes of a sharp revival. The Euro Zone financial crisis shall escalate and percolate to other Euro Nations with high public debt to GDP ratio and ultimately clouding the sentiments over the structure of the currency and financial markets. The overall situation is that of uncertainty and in all probability India will emerge as a stronger nation.
5200 on Nifty is a strong near term support and breach of this level shall pave the way for a steep fall towards 5000 in the coming couple of weeks. A strong correction is long overdue and the quarterly results may well be the trigger. On the upside 5400 is a major resistance. Markets will find resistance near 5400 and may correct below 5000 with the possibilities of the fall being extended to 4600 remaining open.
Exit all long positions and traders are recommended to remain short on Nifty at every rise with an overall stoploss of 5400.
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