Markets on Friday hit the lows of the day after the open and then started moving up around noon and hit fresh highs for the day.One reason being the short squeeze above the key resistance levels and the other reason being the successful EU bond auction on Thursday at a lesser yield.Friday was the 12th consecutive trading day wherein the Nifty hit intraday highs which was above the previous close.(Meaning-You could have made money by holding overnight long position around the closing price). Reliance Industries edged lower for the day.Finally the indices lost the gains in the last hour of trade to end up by three fourth of a percentage.
European markets were volatile as there were news about France losing the AAA and the EU indices closed lower for the day.After the EU markets shut shop, S&P announced the new credit ratings of 16 EU nations and France lost its AAA rating.If you remember,USA was downgraded on Friday 5th,August 2011.
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This week we may see the banks of these nations downgraded as well.EFSF may be downgraded too.
France
is set to auction 11 Billion USD worth of bonds today.Japanese indices
are down by more than one and a half percentage in early morning
trades.I expect our markets to open lower reacting to the S&P
downgrade.Use strict stop losses for your positions and stay cautious.I
expect the result season to be muted with earning downgrades and Forex
losses.Inflation data for the month of December 2011 to be announced
today and the results of TCS and HCL Tech to be announced tomorrow.US markets are closed today on account of Martin Luther King Jr. Day.
