Market Updates: A Good Rally, But The Markets Face Resistance Around 5,200 Levels

by khalid on 16/10/2011 · 5 comments

It has been a good week for the markets and the Nifty surged past 5,130 with a 50 point rally and Sensex added 200 points to cross the 17,080 mark. It was a stellar week for the markets and due to good Global cues the frontline indices powered 1% higher. Still the experts expect the markets to remain capped at this level and there is still some resistance in the markets. The markets have still not improved much and there has been increase for past 6-7 days. There is still some correction left in the market and the upside is still capped at around 5,200 levels. The situation in Euro Zone has still not improved and there is still time left for it to improve. Therefore the upside in the market will be around the 5,200 levels and there is still some resistance left. It is really important to have a long term view in these markets. Going short will not help but one needs to have a time frame of around three to five years, to make some serious money.

There is not much money in the market to solve the debt crisis and the sovereign debt crisis. It is really important to increase the revenues and get the growth up in these markets to solve the debt crisis. The debt trap cannot be stopped without increasing the growth. Just putting some money together isn’t going to do much help but having a proper growth and increasing the revenues is also important.

In India the IT services companies are doing well and the rupee is continuing to decline. Overall this is not a genuine Bull market and one cannot expect to make much money by going short in this market.

Bell The Bull says: Markets capped at 5,200 levels

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