Listless condition in the markets is expected to continue. After a few days of rally indices today took a tumble giving rise to a spectre of continuing volatility. Uncertainties facing the markets are quiet a few.
Interest rates are not likely to come down soon. With monthly increases in diesel prices, inflation will continue to exert pressure against any monetary easing. Companies will therefore be facing an uphill task
protecting bottomlines. There are also political uncertainties. Noises keep coming of early election etc.
Technically frontline indices are in a downtrend making lower tops and lower bottoms. Also Sensex had left previous upward gap @1800 and 1750. These will have to be filled up. So 1800-1750 are possible targets. Same is the case with Bankex. It will have to fill up gaps @ 12250/11750/11400. Most of the important stocks have broaken below their major trendline supports. Further correction is lurking. One should therefore be not in a hurry to buy now.
Stock Ideas:
ICICI Bank - This stock is expected to fill up an earlier gap @975/900 on the daily charts. Will buy if the stock corrects to around these levels.
RECL - This stock is,for a change, is in an upward channel on the weekly charts with lower line support at around 180. Will buy at this level.
Fundamentally both the stocks have a good track record.
Until my next then
Happy investing.
Interest rates are not likely to come down soon. With monthly increases in diesel prices, inflation will continue to exert pressure against any monetary easing. Companies will therefore be facing an uphill task
protecting bottomlines. There are also political uncertainties. Noises keep coming of early election etc.
Technically frontline indices are in a downtrend making lower tops and lower bottoms. Also Sensex had left previous upward gap @1800 and 1750. These will have to be filled up. So 1800-1750 are possible targets. Same is the case with Bankex. It will have to fill up gaps @ 12250/11750/11400. Most of the important stocks have broaken below their major trendline supports. Further correction is lurking. One should therefore be not in a hurry to buy now.
Stock Ideas:
ICICI Bank - This stock is expected to fill up an earlier gap @975/900 on the daily charts. Will buy if the stock corrects to around these levels.
RECL - This stock is,for a change, is in an upward channel on the weekly charts with lower line support at around 180. Will buy at this level.
Fundamentally both the stocks have a good track record.
Until my next then
Happy investing.
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