Market View for Monday 02 Apr 2012

Index Levels

BSE Sensex 17404.20

Major Support 16920 – 16828 – 16667

Major Resistance 17439 – 17687 – 18040


NSE Nifty 5295.55

Major Support 5135 – 5076 – 5025

Major Resistance 5307 – 5385 – 5499


View

The markets sold off during the first half of the last week eventually closing with gains on most of the losses. We are facing the aftermath of the Budget and this is not the first time that the Finance Minister of India has lead to this. Clarity on important decisions has always been an issue when declared in the budget. The power of money today as we all know is with the foreign institutions. Retailers continue to live in their own worlds juggling between their own guts and a few crore free advisors / commentators / blog writers / websites / business channels / newspapers etc. We all need to bring awareness in the retailers that using Technical Analysis will help in developing a decision making quality without the nuisance of being mislead. Anyways one should always remember that controlling oneself in falling into such traps can help a lot. The announcement of the names of investors not to tracked in case of Participatory Notes helped the market’s rally. If this is true then this decision should help the market’s rally further. The current formation on weekend charts is positive with the indices having taken support on the falling trend line drawn joining all the recent tops. This support should be watched @ 16920 – 16828 for the Sensex and 5135 – 5076 for the Nifty. This is a 3 day week with holidays on Thursday and Friday. Being a 3 day week the markets could remain subdued. The 3 days could be bullish because the settlement for Friday and Monday is scheduled on Wednesday and the settlement for Wednesday’s trades fall into the next week. Therefore selling in positions may not happen leading to a rally in the markets. Even if the markets do not rally we may not sell off in this short week. April is an eventful month – starting with yearly numbers, Monetary policy and Eurozone crisis. The charts suggest that if we do not break down below the supports coming in from the falling trendline then we should witness a nice rally in the markets. This could happen despite the fundamental story being weak. Continue to have a scrip specific view… Happy Investing & Happy Educating!!!