10:37 AM
Unknown
As the markets are behaving as per the classical drunkyard theory. There is high risk aversion and therefore the initialreaction is movement towards the best rated treasuries pulling the yields down there. There is no consensus on the quantification and duration of the Europe problem and therefore the huge volatility. The European sovereign debt crisis could set off a severe liquidity crisis in the European financial system, given high exposure of European Banks to sovereign debt of PIIGS countries. As expected, IT and Corporates with exposure to the western markets sold off heavily this week. Over ownership of this sector also played spoil sport. The chances of a pause on the monetary front has increased substantially given the global problem, though, RBI still has inflation as its focus at the moment. Food inflation again proved to be a dampener. IIP came in at higher than expected on account of skewness in the capital goods data otherwise slow down is quite apparent. Markets are behaving on sentiments. And in my opinion ,After a long weekend market will open on Tuesday with a weak note, But Nifty can take a support at 5015 level and Bank nifty at 10100 That domestic institutions have shown good support during the panic times makes us believe that investors can start nibbling from here.
Technically as per candle stick Nifty has formed a doji pattern in a support level, BankNifty had formed spinning top at lower level and most of bank stocks has also formed a consolidate patterns ,But in daily candle we can’t take a decision. So as per my view shorterm Pullback can occure in coming Days