Post Market Analysis - Bulls Vs Bear 18 Dec'09

Today it was Bull vs. Bear for indian stock market.

Thought the day nifty was hovering around 5030 mark and also touched intraday high of 5058 due to positive opening of European markets.
In the last one hour market has lost fare bit of ground and slipped below 5000. Nifty future was trading in discount and nifty went to 4972, finally ended at 4987 middle of support zone of 4970-5000.

Reality was the biggest looser today which sold off almost 2.5%.
So, now what’s next?

- Christmas is on the way, so global markets are likely to wait for the outcome and then react afterwards based on spending data.

- Indian markets are likely to remain in trading range with positive bias.

- I believe interest rate hike has already been discounted in the banking stocks. So if there's no major surprise from RBI then we won't fall much.

- Closely watch support zone and in nifty breaches 4960-4970 on closing basis then we are definitely heading towards much lower levels. We'll see lot of unwinding in nifty long position also traders may go for fresh short. So take a call based on nifty closing above 5000 or below 4960.

As its Friday don't worry about market. Just spend some good time with family.

For new investor,
I'll come-up with article about stock market education which should help lot of people.

Happy Investing!!