Market Outlook - Current  click here>>

Market Outlook - Archives Date List  click here>>

Short-covering rally pulled up the market and it closed at the Nifty level of 5125; however, the international cues are not that encouraging and hence, one again, the selling pressure may resurface. The Dow closed at 10868 down by 59 points while Asia is plunging in the red and the Japanese market is playing a catch up game after coming out of its holiday: the Nikkei is down by 3.15% at 10709. Hong Kong is down by 0.74%, as we write this Market Outlook.

Our man the SGX May Nifty is trading at 5100 down by 30 points albeit on low volume. That it is trading below 5120 is a cause for concern.

For the Nifty today, the range between 5120 and 5125 would be quite crucial for if it manages to hold above this range then the nascent recovery that began yesterday is likely to sustain while any failure to do so would mean serious problems. In case, it stays above 5125 then the next supply zone would be found between 5152 and 5185. We would consider the market getting out of the woods only when we see the Nifty getting past 5196 – 5203 range and staying there.

On the downside, 5084 and 5056 are two key support levels to watch out for. If it were to move below this range it might go down all the way to 5022 – 5012 range. Below 5012, the possibility of a sub-5000 level being shown would be a reality and the next support there would be at 4974; however, we still do not think the Nifty would breach 4951 on a sustainable basis even if yesterday’s low of 5056 is decisively broken.

Rajat K. Bose