Pre Open Thoughts: Bright To Begin
Ø A pleasant illusion is better than a harsh reality. Markets always tend to surprise. Just when most players were bracing for challenging times we got a pleasant bounce. And, going by the strong momentum, it looks like the party could last longer before we see some cooling. Though global developments cannot be ignored either.
Ø So, no prizes for guessing the start. It will be good once again, as world equity markets have extended solid gains. Tuesday’s smart turnaround is likely to spill over into today’s session owing to global cues.
Ø The focus though will continue to be on corporate results, volatility will prevail. Meanwhile, State elections, Budget and RBI policy will be the main domestic events to keep on one’s radar apart from global events.
Ø As per our systems technically 5220 was been a key resistance of late which was taken out yesterday. It remains to be seen whether the Nifty manages to hold above it convincingly. The Nifty must cross 5250 and sustain above 5220 to signal a long term breakout from the current range bound trade and making the move more reliable. Near-term support is likely around 5000 and 5050.
Ø Over all we still remain long on Nifty with 5050 being the point of trend reversal with a immediate target of 5400.
Results Today: Ashok Leyland, Satyam Computer, UCO Bank and Welcorp.
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