20 June 2016


Bulls scamper back.  The Nifty Future traded as per our expectation and closed above 8200 level.  Today markets were not only witnessing strong recovery but also closed on a higher mark. The indices like IT and Auto outperformed and pulled up the benchmarks. Both the indices closed on a positive note, up around 1% respectively. Domestic equity indices Sensex and Nifty on Monday opened the day in red on RBI Governor Raghuram Rajan’s no to a second term, but soon recouped their losses on hectic buying by some institutions and soothing voices from rating agency Fitch and some prominent marketmen while fading Brexit worry helped too.  RBI governor Rajan announced his resignation on Saturday which came as a surprise to most market participants, largely seen as move against incumbent politicians suspect to be advocating crony capitalism.  The Sensex ended with a gain of 241 points at 26867. The Sensex opened at 26497 touched an intra-day high of 26885 and low of 26447. The Nifty closed with a gain of 68 points at 8239. The Nifty opened at 8116 hitting a high of 8244 and low of 8107.
Technically, the markets remain in a medium term uptrend whereas the short term remains susceptible to global pressures. We maintain our positive stance on the market and see the Nifty crossing its next swing high of 8336 quite soon. On the downside level 8100 will work as very strong supporting levels if nifty breaks 8050 level then once again the 8000 levels going to be the target for the bears.
SUPPORTS: 8100 AND 8050

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