10:33 AM
Unknown
Correction in crude oil and steeper than anticipated oil price hike was received well by the market helping the market recover strongly from
the oversold territory. The oil price hike also assuaged investor nervousness from a policy perspective, implying better political will. CCEA
clearing the Cairn deal, albeit with riders, too is a positive. The Greece parliament voting for the austerity plan helped equities
internationally. Large caps predominantly rallied with FII buying `73bn over the last seven trading sessions. Consumption theme againplayed out stronger.
The market, I believe, has touched the upper band of the current trading range and has higher probability of drifting down from these
levels. The break out of this trading range on the upside looks remote in the very short term. The trade deficit for the month of May came
at ~$15bn, despite better show on the export front. My argument in the interim would be negated only with a significant correction in
industrial commodities, especially crude and copper.
I continue to remain positive in the consumption and healthcare space in the short to medium term and recommend to add on every
decline. Technically, market is likely to find support at 5580 & 5496 levels and would face resistance at 5670 & 5710 levels.