TESTING TIME

MARKET FOR NEXT WEEK (14^th March to 18^th March 11)

Dear Investors

Globalization of financial markets, all over the world, has effects

One event at one place on all the markets, take the example of

Japan’s earth quake and tsunami, because stock markets run

On sentiments events like this create panic situations.

Investors having long term view, in sound economic

Conditions (like India) should take these events as an opportunity to

Built their portfolios because events like this do occur in the life of

Countries but that does not stop life in longer term so use the event

As a chance and proceed for, Bottom Fishing’.

There are some signs globally as well as locally of improvement

In Manufacturing and consumption (suggested be US data), indicating

That reversal is taking place in Developed Economies’ Inflation is

On the way to lower levels, which will make RBI to take a soft view?

On Interest rates on Economic Policy on 17th March, which will help?

Number of sectors, dependant on credit and capitol allocations, like

Capital good and Infrastructure

From that point of view coming week should be looked up on as

An opportunity for long term investors.

Short term traders should guard their positions with strict stop loss

At every level.

Monday may be the day of extreme volatility but once the things

Get cleared after 17^th March, after RBI policy, market will move

To up ward trajectory till that time use every event for getting

In at lower levels or wait on side lines with cash at hand

. Nifty is likely move above of 5600 barrier. In the way it will face

Hurdles at 5480, 5580 if it sustain above 5580 with volume, then

Short covering is expected in the bear hammered stocks. Hence

Opportunity is available for some quick profit.
 On down side

Nifty will find support at 5400, 5380 level.In case of additional
events like ,Downgrade of Euro zone, increase in rates and worsening
in Japanese situation will lead markets to go down, in that case
Nifty might test previous low of 5170

Since this week marks high volatility. All trades should be with

Proper stop losses and swift actions
Keep a watch on
5330/5240/5177 as important support , while
5505/5567/5600 as stiff resistance levels. Bias for the week
is on downside

Events to Watch during this week….

Financial bill reading in Parliament from Monday

Advance tax figures on 15^th March

RBI Policy on 17^th March

Crude prices: Crude has fallen below 103$/barrel

Indicating short term bearish ness

Now the main question is what next?

I will suggest investors and traders to watch the events

On Monday From side lines, depending on Nifty moves

During the day and on closing basis take positions for

Remaining week with an up ward bias assuming that

RBI will be taking a soft stand on Interest rates and does

Not downgrade growth projections

IMPRESSION

No need to panic, 

 Thanks

Dr. Vasant Bele

All the views are personal, invest after consulting experts

(For detailed analysis and stock specific, read Markets on

  Monday)