Our last Market Snapshot dated 30th May 2013 said “We maintain our cautious to bearish view on markets and every rise in NIFTY gives us more selling opportunities.” Post that, NIFTY has lost more than 200 points. Today NIFTY closed at 5923 up by 4 points. Across globe we were among the better performing markets today with other Asian and European indices down close to 1%. Why this sharp fall? Weak macro data (GDP and PMI), negative global cues and fear of US tightening liquidity are the major reasons. Hot money which came through FII route has started going out. What’s next? Rupee continues to weaken against USD and it closed at 56.73. To make it worse Brent Crude price increased $103.4/bbl. Also we don’t see any sector in today’s’ scenario which can take the markets up. Technically, we have broken major support levels for NIFTY. Today 5890 acted as a good support for NIFTY. Most probably NIFTY would soon break this support too. We have certainly become more bearish on markets and see further downside on NIFTY. We recommend exiting long positions (if any) and fresh short positions can be built. grow-with-samarth.blogspot.in/2013/06/market-snapshot-5th-june-2013.html
Posted on: Thu, 06 Jun 2013 04:05:56 +0000
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