BOOOMM!!!! Market opened on a gap downside at 5545 on the support of global cues. Today it filled up our one of the previous gap at 5566 but it created a new one at 5580-5604. One of the major reason for slip down was the worry above Italy economy. EU is in a bad shape as country by country are hit a a bad financial crisis. But i dont know why Indian markets are so badly affected by Italian crisis. I just googled that India-Italy foreign trade is just around 2.8% of India’s total. Why there is so much Panic on such cues in domestic region. There were two more events for the day in domestic region. Firstly,Infosys show 5.4% down in profit on QoQ basis but saw a growth of arnd 15% on YoY basis. Infy announced a mixed result as per the expectation of the street. IT sector may face margin pressure ahead as US clients are demanding 15% low cost service. Secondly today Captain of India, Manmohan Singh made changes in his team by bringing in 8 new ministers. Now we have to wait and watch what this new team can do against the big match with high Inflation and raw material cost. Technically speaking market is approaching towards oversold condition. It has breached 100 and 200 DEMA and closed below them and even it has closed below Fibonacci level of 5550. On weekly chart we are witnessing the formation of “Evening star” and it gets validation if market touches 5447 or below levels once this week. I still suggest to Hold Short position on NIFTY until 5450/5340/5200.
NIFTY levels for 13th July:-