Markets last week traded lower in the
midst of geo – political concern in Iran and no clarity on US and China trade
barriers and Budget worries, hence the market closed lower for the week by
almost 0.5%. There was across the board selling in all the sectors and it was a
pathetic close on Friday. It appears until budget on July 5, market would
remain in a broader range between 11400 to 12000, unless there is an
improvement in the global issues and forth coming budget we would have to see whether
markets surge higher, however if budget prove to be lacklustre and there are no
major policy decision on the economy, markets would see a sharp decline.
Investors are once again suggested to remain at least 20-30% in cash to be
deployed post budget.
Technical–Technically markets are crucially poised within a
range. If a break out above 12000 happens, market will witness a sharp rally
towards 12600 – 12800 levels and initially if markets break down 10600 and
closes below this level, it would test 10400. Below this there would be catastrophe
and market could see sub 11000 levels. In the best case scenario, it appears,
until budget the market would remain in a range. Short term range is between
10600 – 10900 and the Intermediate (Medium Term) or the Broader range would be
10400 – 12000.
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