Market View for Friday 11 Nov 2011

Index Levels

BSE

Sensex 17362.10

Major Support 17278 – 17133 – 16900
Major Resistance 17502 – 17641 – 17658

NSE Nifty 5221.05

Major Support 5201 – 5164 – 5085
Major Resistance 5265 – 5309 – 5317


View
The markets sold off with SBI cracking approximately 7% after its numbers. The sell off was mostly due to the downgrade of the banking system by rating agency Moody’s. The concerns and the unclear approach of the Government on the NPA’s and the further infusion of new money for loans to continue is a major cause of worry. The crisis surely is not as big as the European Union but this also not be neglected in a period when economies are slowing down and the inflation is on a rise. One thing is for sure that with the interest rates rising and remaining at current levels the markets are going to find it difficult to rally to make new highs. The need to the day is path breaking policies on the Government front which could act as a stimulus for the long dull markets. The winter session which starts soon may also prove to be a spoil sport with the opposition gunning for the issues like Black Money and Jan Lokpal Bill. The markets now need surprises which can make them cheer. On the global front some stringent and out of the world ideas if any manage to save the Euro zone could also be a dim sight of light for all the world markets. All said and done nobody can expect any country to fail but the time taken for saving these economies could be a heartbreaker. Till then lets expect for the best to happen with a positive outcome. Technically our markets now have to survive the supports if the selloff of this banking system downgrade continues. These supports come in from the levels which acted as a resistance for the markets in the months of Sept and Oct. watch supports for the Sensex @ 17278 – 17133 and for the Nifty @ 5201 – 5164 levels. If these are sustained and the markets manage to move up then the indices could witness a rally to test higher resistance levels. The market players would wait for triggers and developments on the European front and would mostly be driven by the American and the FTSE market. Hold a scrip specific view. This period is when one should concentrate on day trades using the Intraday Action Viewer built inside PROFISION PRO. If you do not know what it is or how to use it to your advantage then call the PRECISION TECHNICALS support team. The support is available from 8 am to 12 midnight on weekdays. Take benefit and be a part of the winning team of ARJUN’s and TIGER’s. It is 11 11 11 – lets see if this day has any good surprises for us other than celebrity kids being born. Happy Investing, Happy Educating and Happy Trading!!!!