July 2012

Trading levels 9th / 13th July 2012



Last Friday – last day of June quarter as well …. Was a big big upday for all world markets and our market was no different. Euro summit sprang a surprise with Madam Merkel backing off from her hawkish stance. We broke out of 5050 / 5200 range and made a dash for 5300.

Last whole week we kept on consolidating but always with a positive bias ending the week 40 odd points higher. This meant that now we have had 5 consecutive up weeks.

PM has taken over as interim FM and he is behaving as if earlier govt was not his govt. He is trying to show off with some big bold announcements and we need to see actual action in the coming weeks. This coincided with a bit of strength in Euro as well and the rupee also moved up by about 4 odd percent in 4 days. But that strength has since vanished and we should be crossing 56 again in the coming week.


We should be opening weak on Monday – on the back of Fridays weakness in US markets in the face of disappointing job report. If we manage to sustain above 29th June high … this rally can still continue. Otherwise we will see a gradual decline in line with global markets.

We need to book profit on many popular midcaps – momentum stocks – on Monday morning itself as they can easily correct 10/15 % if market corrects 2/3 %.