PRE-OPEN MARKET OUTLOOK(31-03-2009)

I PREDICTED YESTERDAY AT 04;00 AM FOR NOT ONLY INDIAN BUT ASIAN AND EUROPEAN MARKETS IN THESE WORDS:-

"INTRADAY CHARTS OF ASIAN AND EUROPEAN MARKETS ARE ALSO SHOWING SELLING FORMATIONS THEREFORE ALMOST ALL THE ASIAN AND EUROPEAN MARKETS ARE ALSO EXPECTED TO OPEN AND CLOSE IN RED TODAY."

AS I TOLD FOR SAME HAPPENED AND ALL THE ASIAN AND EUROPEAN MARKETS CLOSED IN RED YESTERDAY EXCEPT THIS MOST OF THE MARKETS CLOSED FROM 2% TO 5% DOWN.

FOR US MARKETS I TOLD"US INTRADAY CHARTS ARE SHOWING GENUINE SELLING FORMATIONS" AND US MARKETS ALSO CLOSED IN DEEP RED YESTERDAY.

ANALYSTS ON BUSINESS NEWS CHANNELS STARTED TO TELL FOR MUCH HIGHER LEVELS BUT THIS FACT MUST BE KEPT IN MIND THAT FOR A SUSTAINED RALLY POLITICAL CLEARITY IS MUST.IT IS VERY MUCH POSSIBLE THAT AFTER GENERAL ELECTIONS HIGH POLITACAL DRAMA MAY BE SEEN AND A PRIME MINISTER OTHER THAN CONGRESS OR BJP WILL LEAD INSTABILITY AND THAT MAY PROOVE HAZARDOUS FOR INDIAN MARKETS.I AM EXPECTING RANGE BOUND MOVEMENTS TILL DECLARATION AND RALLY IN SITUATION OF CONGRESS OR BJP PRIME MINISTER.ON GOING PULL BACK RALLY WAS ON THE BACK OF US RALLY WHICH IS DOWN AFTER 2 DAYS DEEP RED CLOSING

AS US MARKETS CLOSED IN DEEP RED YESTERDAY THEREFORE SENTIMENT IS DAMPENED AND OPENING WILL BE WEAK TODAY AND MORE WEAKNESS WILL BE SEEN IN THE COMING SESSIONS.AS IT IS THE LAST DAY OF FINANCIAL YEAR THEREFORE MUTUAL FUND RALLY LED IS POSSIBLE TODAY FOR SHOWING GOOD NAV.

AFTER RED OPENING THERE IS A CHANCE OF GREEN TODAY BUT MORE DOWN MOVES WILL BE SEEN IN THE CONING SESSIONS.


NOW AFTER OPENING OF ASIAN MARKETS ARE TRADING WITH GOOD GAINS BECAUSE IT IS THE LAST DAY OF FINANCIAL YEAR THEREFORE MUTUAL FUND RALLY LED IS POSSIBLE TODAY FOR SHOWING GOOD NAV AND ABOUT THIS POSSIBILITY I TOLD IN THE MORNING IN MY FIRST OUTLOOK.

INDIAN MARKETS WILL ALSO OPEN IN POSITIVE ZONE AND CLOSE IN GREEN TODAY BUT WILL NOT BE ABLE TO RECOVER WHOLE OF THE YESTERDAY LOSS.


(LALIT KUMAR DHINGRA)