Daily Nifty Analysis
India’s benchmark indices rose 2.7% on Wed, posting their biggest
daily percentage gain since early January 2012 that was boosted by hopes
of a rate cut by the RBI. Expectations that the ECB will
announce more stimulus measures to resolve Euro Zone’s financial
problems also contributed to the gains in global markets.
Market has moved upp in the expectation of policy actions both at India and International levels. We anticipate market may test resistance at around 5050-5075 and will need actual policy actions from various governments to cross this level.
Market sentiments were positive on the announcement from the European Central Bank issuing a schedule for an additional long term refinancing operation (LTRO) as insurance against further flight of banks accounts in Europe. Rising hope of policy rate cut by RBI, expected positive outcome from upcoming realty and construction sector also moved on the back of cuts in rates from the RBI.
Nifty has breached the resistance of 4965 levels, where
decisively it portrays a bullish pattern. Only a further trigger should
bee provided from various governments in order for a clean upside rally
in the equity markets. Index is likely to cross 5,000 mark to test
levels at 5,060 followed by 5,120 levels. As positions on net buyers
have increased the support of 4960 should be labeled as an opportunity
to go long, a break of which 4938 should be held as intraday support.
Nevertheless the breach of the same should negate the bullish sentiments
across the market.Market has moved upp in the expectation of policy actions both at India and International levels. We anticipate market may test resistance at around 5050-5075 and will need actual policy actions from various governments to cross this level.
Market sentiments were positive on the announcement from the European Central Bank issuing a schedule for an additional long term refinancing operation (LTRO) as insurance against further flight of banks accounts in Europe. Rising hope of policy rate cut by RBI, expected positive outcome from upcoming realty and construction sector also moved on the back of cuts in rates from the RBI.
View On Indian Rupee
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| USD/INR_07.06.2012_xDirect India |
Yesterday, the partially convertible Rupee ended at 55.36 to the USD after trading in a range between 55.61 on the upside to 55.15 on the downside and ended the day at 55.35.
The Indian Rupee is expected to trade positively today, tracking the strong gains in the Asian stocks and the uptick in the Euro which pushing the Dollar index lower. Nevertheless a rate cut from RBI should actually pave for depreciation in Indian Rupee; however as equity markets rally’s across the board the depreciation would be negated by boosting the strength in the Indian Rupee.
As London session begins we expect a further upside in the Indian rupee, where the USDINR would be poised to test the lower end of the bull trend channel at 54.80 levels and only a breach and close below it should provide leeway for 54.35 levels (horizontal line support coupled with June1st low). On the resistance front, yesterday’s high of 55.61 should negate the downside in the pair and should be considered as intraday upper resistance.
Gold, silver trade higher ahead of US Fed policy decision.capitalstars
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