PRE-OPEN MARKET OUTLOOK(13-05-2009)

IT IS THE CHARACTER OF STOCK MARKETS THAT SHORT TERM TRENDS CHANGES VERY FAST AND A TRADER SHOULD BE FAST TO CATCH THE SHORT TERM TREND OF MARKET AND TRADE ACCORDING TO THAT.MARKETS DISCOUNT ALL THE POLITICALS DEVELOPMENTS AND ECONOMIC EVENTS.I CLEARLY TOLD ABOUT THE CHANGING STAND OF INDIAN POLITICAL PATRIES.THERE HAVE BEEN THIRD FRONT POWER GAINING FEAR BUT NOW WHEN THIS POSSIBILITY HAS ARISEN THAT COMMUNISTS MAY SOFTEN THEIR STAND BECAUSE IT WILL BE PROFITABLE FOR THEM.IT HAS BEEN ALMOST CONFIRM THAT EITHER SOONER OR LATER NDA OR UPA LED FRONT WILL COME INTO POWER AFTER ELECTIONS.AS THERE HAVE BEEN SELLING NEAR 3700 AND POLITICAL UNCERTAINITY FEAR THEREFORE 3352 WAS EXPECTED AND MARKETS MOVED DOWN IMMEDIATELY BUT AS SOON AS UNCERTAINITY FEAR WIPED OUT MARKET RALLIED YESTERDAY.I CLEARLY TOLD ABOUT THIS YESTERDAY AND ALSO TOLD YESTERDAY THAT:-

"VERY CLEARLY I AM SAYING THAT IF NIFTY SUSTAINS ABOVE 3575 THEN AGAIN UPMOVE AND GREEN CLOSING WILL BE SEEN TODAY"

NOW LAST RESISTANCE IS NEAR 3700.ALL TRENDS ARE UP AND POLITICAL UNCERTAINITY HAS ALMOST REMOVED.ALTHOUGH ON ECONOMIC FRONT NEGATIVE PERFORMANCE IS SEEN BUT ON MANY FRONTS IMPROVEMENT IS CLEARLY VISIBLE THEREFORE TECHNICALLY AND FUNDAMENTALLY MARKETS ARE READY FOR UP MOVE.

AS SENTIMENT IS HEATED AFTER SMART RECOVERY YESTERDAY THEREFORE SOME INTRADAY CORRECTION AND VOLTALITY WILL BE SEEN TODAY AFTER FLAT OPENING.BUYING SHOULD BE DONE AFTER SOME INTRADAY CORRECTION.INDIAN MARKETS WILL OPEN ALMOST FLAT AFTER FLAT GLOBAL CUES AND WILL TRADE NEAR 3700. ALTHOUGH NIFTY WILL TAKE SOME TIME TO CROSS 3715 BUT NOW 3715 WILL CLEAR AND ON GOING RALLY WILL REMAIN CONTINUED.


(LALIT KUMAR DHINGRA)