Determination of Indian stock market trend based on Global cues

1. Indian stock market is up on the wake of global news and fiscal stimulus package by Govt of India. Asian markets namely Hong Kong, Korea, Taiwan and Thailand also registered the gains.Dow Jones Industrial Average is still directionless and is struck in a tight range of 8000 and 9500. Positive indicators is available from CBOE volatility index which has closed at the lower end of its medium term range between 50 and 90 and the same sends the message that now confidence is restored in the investor community and irrationality is reducing from the market.

2. I had already written for the CBOE Index last week on Technical Analysis Stock Market Blog on 11 Dec and same has been validated now.



3. Argentina, Mexico and Brazil recorded a strong rally last week which are major commodity markets and as a result one can see CRB index gaining over 6 per cent. However one has to be cautious as CRB index is below its long-term support at 356 which means that outlook for this sector continues to be cautious.

4. In view of above developments one can say that if Nifty remains above 3000 mark than it will touch 3100 level.