Indian Stock Markets : Rally Due, but Closed Today!!!

7:45 a.m.- Markets Closed: On a day when Indian markets are expected to have zoomed up on technical and international cues apart from hefty short covering due to f&o expiry, Sebi has decided to keep the markets closed till normalcy returned to South Mumbai. Asian markets have extended the rally based on sustained rally in US where today will be closed due to Thanksgiving day and Friday will remain a curtailed trading day.

It was yet another fantastic day which emanated as day where not having logics played the logic. We did break the shackles and triggered a move ahead. Sensex dared not to break the previous day's low in lacklustre trading till mid-day. All on a sudden stocks went North bound with somewhat better volumes, totalled 61K crores. However, previous day's high was also not achieved. Sensex was between 8658 and 9062, closing at almost the best level at 9027, just below R2. My favourite stock NTPC, recommended a few days back, has not only crossed 160 as opined by me, but closed above 163. FII's sold few hundred crores worth, most of which were mopped up by DII's. AD ratio was negative at 2:3.

Asian markets started of mixed, closed also like that but at improved levels. Nikkei was down 1.33%, Hangseng up 3.8% and STI up 3.5%. China has slashed CRR by 100 bps apart from cutting interest rates. Europe opened in negative zone after the rally in previous days, however managed to end closer to the flat line. Cac was worst, down 1.24%, FTSE down 0.44% and Dax flat. EU has proposed US$ 259 stimulus to rejuvenate the economy. US stocks started of lower with a natural possibility of closing lower after huge rally in preceding three sessions. However, the indices crossed over to positive ground, never to look back and steadily increasing to close at the best levels. Dow closed up 2.9%, Nasdaq up 4.6% and S&P up 3.5%. It is more than 2 months since US stocks had advanced for 4 sessions continuously. Jobless claims remained at higher levels, October durable goods orders dropped sharply, October personal spending dropped as was expected and New home sales dropped to lowest level since 1991. Oil inventory levels rose larger than expected, this being ninth straight week of increase. Mortgage rates dropped following government's plan to prop up consumer lending. With all these negative news, the only silverlining was the expected bail out for the Automakers which boosted stocks like GM and Ford. Obama has also soothened the investors by stating that help is on its way. Crude rallied to settle above US$54/bbl which elevated the energy stocks. US$ improved almost 0.9% against major currencies. It was 49.50 against Rupee and 95.49 against Yen.

Mumbai Terror:-Wednesday evening was yet another black day in India, the terrorrists striking again at the heart of the financial capital of India, Mumbai. This time it was not just a terrorrist attack or something like serial blasts, but nothing short of waging war with the nation itself. No mention about the identity of the group which has done it, we may come to know soon as it was almost an open battle, even face to face. I am sure, peace loving multi-cultured Mumbakar will adapt to the incident and move ahead.

The Oil Minister has reportedly written to the UPA Chair Person, Sonia GandhiSonia Gandhi, recommending reduction in Petrol and LPG. Reliance is planning a second Refinery. Barring the terror attacks which may cast some doubts on the minds of the investors, the time is ripe for a huge rally in coming days. Sensex will make two way movements and close better, despite being the November f&O series expiry. Day traders may buy when the sensex is just above 8916 and sell when breaking below that level which is unlikely to happen. If that level is broken excellent support will be there at 8809, 8875 range. At higher levels, 9173, 9182 range if broken, 9291, 9320 range will be tested.

Sensex: Supports: 8916, 8769, 8641 Resistances: 9182, 9320, 9724

Likely Trading Range: 8809, 9320

Nifty: Supports: 2719, 2676, 2599 Resistances: 2796, 2839, 2959

Likely Trading range: 2687, 2840