Pre-Open Market Outlook(16-03-2011)
Indian markets are influenced by flood of negative news in 2011. Deeper correction begun after unprecedented rise in infation and now hazardous risk of radiation. Calamity is so high that no one can guarantee about its magnitude of spreading around globe. All the market were fear gripped and closed in deep Red but Indian markets out performed and closed with minimum percentage loss yesterday.
It is positive for Indian markets that Nifty did not sustained below 5400 in extremely dampened sentiment and maining range bound character through trading within 5400-5600. All the devastating news are being discounted within mentioned range and final view for Indian markets should be formed after its breaking out and sustaining beyond.
As short term trend turned oversold after sharp fall in previous sessions therefore all the Asian markets are in Green today morning and Indian markets will respond it through opening and positive zone trading firstly within 5450-5520. Supports and Resistances within 5400-5600 are as follows:-
1- Strong support- 5400-5440
2- Resistance- 5540-5580
Strong support at 5400 has been proved from last 7 sessions trading and all the news are being discounted within 5400-5600. Markets feeling relief from developments in Libya but quantum of radiation spreading is not known yet. Let whole picture clear then decisive moves beyond 5400-5600 should be expected and till then market will watch and prepare for next moves within it.
Market range bound,not prepared for any side break out and will prepare in the coming sessions. Let this process complete then final conclusion will be drawn from coming sessions intrady charts formations. Trend deciding ranges at present are:-
1- For today- 5450-5520
2- Finally- 5400-5600