Market Weekly Report by Imtiaz Merchant

Market Brief – AS SUGGESTED MARKETS TRADED NERVEOUSLY IN A RANGE, GOOD AND THE BAD NEWS POURED IN AND KEPT THE MARKETS ON THE EDGES, AND WITH SHORTER WEEEKEND, THE MARKETS MANAGED TO END THE WEEK ON POSITIVE NOTE, THOUGH THE DAY AND THE MONTH CLOSED LOWER.THUS CONFIRMING A NEAR TERM RANGE BOUND TRADE TO CONTINUE FOR A WHILE, GOING FORWARD THE MONSOON FORCAST, 4^TH QUATER RESULTS , ECONOMIC POLICY REFORMS, INTERNATIONAL MARKETS CUES  AND POLITICAL DEVELOPMENT LOCALLY ARE THE FACTORS CRITICAL TO MARKET,  HENCE ONE NEEDS TO SEE THE PROGRESS IN THEM CLOSELY.  UNLESS THIS IMPROVES MARKETS WILL AT BEST REMAIN IN A RANGE OR DRIFT DOWN ON ITS OWN WEIGHT. NEVERTHELESS, THE LONG-TERM GROWTH IS INTACT.

Technical – MARKETS ARE IN A CRTICAL RANGE BETWEEN 10000 AND 10450 AT BEST ON THE HIGHER SIDE, TRADE AND A CLOSE BELOW 10000 THE NIFTY WOULD TEST 9800 AND THEN 9700 FROM WHERE, A SHARP BOUNCE IS EXPECTED. THE VOLITILITY HOWEVER SHALL CONTINUE FOR QUITE SOME TIME PERHAPS THE BETTER PART OF THE YEAR.

ON THE HIGHER SIDE THERE ARE MULTIPLE RESITENCES THAT WILL DISALLOW THE MARKETS TO PROGRESS IN THE NEAR TERM UNLEES THE FUNDAMENTAL IMPROVES. 10250 TO 10450 IS A TOUGH RESISTANCE OR A SUPPLY AREA. THE TESTIMONY OF THIS IS THAT MOST OF THE TRADED STOCKS ARE IN A SHORT TERM TO MEDIUM TERM DOWNTREND, HENCE IT IS VERY DIFFICUKT FR THE MARKETS TO TAKE OUT RESISTANCE, WE CAN CONVINEIENTLY CONCLUDE THAT THE MARKETS ARE IN A SHORT TO MEDIUM TERM DOWNTREND.

INVESTORS SHOULD EXIT FROM WEAK STOCKS IN RALLY AND HOLD ON TO BULLISH STOCKS PATIENTLY, MOREOVER A CASH LEVEL OF 20 TO 25 PERCENT SHOULD BE MANTAINED, UNLESS THE TREND GETS MORE VIVID.

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