Indian Markets showed highly volatile movements - Alex Mathews

After opening on a flat to positive note, we saw markets rebounding from the levels towards 5100 levels. It faced resistance at that level and thereafter showed highly volatile movements to finally close for the day closed in green after erasing half of its intraday gains. The Nifty VIX jumped around 6%. Markets around the globe saw positivity on expectation that the EU meeting which is scheduled on Friday will deliver a positive outcome to support the efforts of major debt ridden nations in their efforts to counter debt crisis. FIIs started to show their end of the year pattern of infusing money into the Indian equity markets. In past 10 years, most of the time, FIIs have remained net buyers in December contributing to an upside. This December till today, as per SEBI FII data, they have been net buyers of Rs 1968.5 crore in the equity segment alone. The market breadth, indicating the overall health of the market, was positive. On BSE, 1,431 shares rose and 1,364 shares fell. A total of 114 shares were unchanged.

In the case of Nifty, 5100 will remain a major hurdle and if it can break that level then we may see Nifty moving towards 5131 and 5152 while support lies at 5030 and 4997 levels. Tomorrow we are expecting weekly inflation number and according to the recent inflation data, we may see some more consolidation on the inflation side. But one should keep in mind that the fall in inflation is due to the base effect rather than actual fall in the price of food articles.

Asian markets were trading in green after US markets showed recovery in the last part of the trading session the other day and renewed optimism that the European leaders will take necessary steps to fight the debt crisis at meeting scheduled on Friday after S&P put 15 European nations on review for possible downgrade. One another positive in the Asian front was the GDP number of Australia which climbed to 1% in Q3. European markets were sideways to positive as Greek Prime Minister Lucas Papademos got parliamentary approval for the 2012 budget which is expected to reduce the debt half the way. Out of 300 lawmakers, 258 lawmakers supported Lucas's budget.

Source : Equity Bulls

Keywords