Indian Stock Market Year 2009 Must Read Update

1. Indian stock market has some more up move left and same will now be stimulated by the fiscal stimulus package from the government as now banks have more funds for providing credit which will provide a turbo boost to the economy. For short term we will see Nifty consolidating between 2980-3120.


2. The present rally is a counter trend rally and is occurring due to the massive stock prices fall in year 2008. One can be upbeat in Indian sharemarket provided Nifty is able to hold 2799 and if this point is held than Nifty may see rally to the points of 3400-3700-3800 in medium term time frame. If results of Indian companies is just more than market expectations than one will see a rally and one will have to see the market action with baited breath as it holds key to the likely direction to the Indian stock market as till that time the effect of govt stimulus package will peter out. On the negative side if Nifty 2799 level is broken than one may see mkt retesting the October lows in the next 4-5 weeks and and as a result market may fall to the levels of NSE Nifty 2300-2200. This negative view for the mkt is also shared by Darrly Guppy of guppytraders. Sensex has strong resistance at 10,800 and support at 7,800 which needs to be keenly watched.

2. Though year 2009 will be difficult for international markets but one will be seeing inflow of foreign funds in India and China and as a result one will be seeing 7% growth for FY09 and 6.5% for FY10 in India Moreover due to return of global liquidity; China will be seeing growth of 5-6% over the next few years. One can read further about Indian ShareMarket Trend here.