Markets quite as expected continued the
downside journey to test 11200 from where it recovered a bit to close the day
and the week off the lows at 11285. The fall in the markets was primarily due to
slowdown in the economy, lack of policy initiative by the Govt. June quarter
Corporate results being muted baring few companies, unabated rise in
unemployment and uncertainty about agro output since many parts in India is
suffering from unprecedented floods and some parts receiving scanty rains,
global cues not been encouraging, all
this lead to major correction in the markets and it appears that on the back of
uncertainty in economic fundamentals more downside in the market is not ruled
out. These are tough times in the markets and that investor who wants to invest
for long term should initiate some buying traders and short term investors may
better stay away.
Technical–Technically market look weak and vulnerable to more falls,
although a small throwback rally is not ruled out since the market is oversold
in the near term, on the higher side there are multiple resistances that may
keep the market under check between 11400 to 11700 at best, however a close
below 11200 will see the nifty sliding down once again and may test 11100 to
10600 levels. In the initial range for the market is between 11200 and 11500
whereas the broader range is between 11000 and 11700.
