On Tuesday, the market opened lower on the back of weak global cues especially from the Asian markets. The investors globally remained cautious ahead of bank repayments of emergency loan to the ECB later this week. Banks have to repay 442 billion euros to the ECB on Thursday, leaving a potential liquidity shortfall in the financial system of over 100 billion euros. Meantime, the European as well as the U S markets closed in deep red yesterday with DOW losing 268 points while the NASDAQ lost 85 points as interest rates tumbled after signs of slowing economies spooked traders who were already uneasy about a recovery.
The Sensex closed yesterday at 17543 losing 240 points, its lowest in two weeks. Meantime, as directed by the apex bank prominent PSU banks have announced their base rates with SBI keeping it at 7.5%. The base rate mechanism ensures that larger borrowers do not bargain for cheaper rates from banks, distorting their asset-liability management.
It is advised to trade with caution till clear market trend emerges.
FOR TODAY::
SGX Nifty suggests we will open in deep red around 5214.
A minor support is at 5211/5200. Breaking 5200 level, we may see 5165-5170 level.
TODAY'S IDEA:: Around 5200 level, one can go long (small); However, if breaches 5200 level, then, it may halt around 5170 level today. At 5170 level, we may average with clear idea that if 5150 also breaches, we will exit all longs. Trade accordingly.
Note: Check with your broker for today's trading Pay In/Pay Out and accordingly plan your trade.
