BSE Sensex - 19270.06 | Major Support 18980 – 18691 – 18166 | Major Resistance - 19293 – 19392 – 19714
NSE Nifty - 5680.40 | Major Support - 5580 – 5480 – 5318 | Major Resistance - 5688 – 5754 – 5869 |
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The markets continued to move up closing with big thumbs up after a scary Tuesday when we witnessed a 3.5 to 4% sell off. In the last two weeks from a low of 5118 the Nifty is currently trading at approx 5700 levels – a rally of more than 10% to close as the strongest two weeks in the last many years.
Going forward we have a host of events which will decide the fate of the markets. As we discussed last week the most important event which would be watched closely and which could make the markets unstable is the American War Against Syria. This is an event in which if America wins the support of the rest of the countries could turn out to be an event which could end with a positive outcome. But if the US fails to garner support and goes ahead with the attack on Syria then that could end up into a catastrophe. As we all know the US economy is a War economy – means like in India our economy is agriculture based economy which means if we have good rains then the economy does good as there is money circulation which happens in turn boosting all the sectors of the economy. Same way in the US the economy is a war economy means they have to go to war so that the weapons produced by their huge companies and the weapon related research which happens can be tested out in the field. To ensure that the consumption of weapons happens in plenty they have to go to war. This makes their their economy tick and may be help in coming back in the green. By now they have understood the toxic sides of the currency printing which has been going on for the last one year. And this war on Syria can be a medium for improving the state of the economy cannot be denied.
The second big events are scheduled for next week with the Fed review happening on 17th and RBI policy review happening on 20th. Indian Currency will continue to remain in the limelight. Till the currency continues to soften we will witness the rejoicing. With the kind of moves that we have witnessed in the Rupee anything can happen and if it manages to cool down to 59 levels then expect the markets to hit 6200 – 6300 again. But remember there are a lot of factors which are involved. CAD continues to be a problem and with war on Syria we could have the crude prices going up due to unrest in the Middle East. The other side to this is if the Government shows guts and they go ahead with a steep hike in diesel price then that could soften the CAD for now and also help the currency cool down. A lot of IF’s and BUT’s – which I am afraid don’t help us on deciding anything as a concentre view for the market but surely would give us a guideline if any of the events take place.
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