March 2013

MY WEEKLY TAKE ....

Trading levels  ---  25th / 29th     March  2013

Political unstability was the last thing that the markets wanted. Macro problems were already weighing heavily and DMK withdrawing support broke the back of the broader market particularly.

The true picture of market condition is not reflected in either the NIFTY or even the MIDCAP index. Many popular counters got simply decimated and these stocks are trading at the levels lower than when nifty was at 4500 in December 2011. Many stocks have even gone lower than October  2008 levels.  SUCH
IS THE EXTENT OF THE DAMAGE. 

Market may continue to underperform for some more time and I expect a strong support … a very strong one – to emerge around 5460/5480 levels. These levels may come in play in next 8 to 10 trading sessions with intervening upticks couple of times. THIS IS ASSUMING WORLD MARKETS WILL BE AT THE MOST IN SIDEWAYS PATTERN.

American markets have turned sideways already and many analysts in US do not see a big upside from current levels. If the resultant downslide starts within next 10/12 days when Indian markets are in the strong downtrend, we can even have levels of 5200/5250 on nifty.