After a 2-day weak performance, the mkt not only neutralize its negative tone but also went into bullish mode with new year highs. Like in the previous week, strong crude oil price is used as a cue to buy across the regional.Rising commodity price is seen as a sign of economy recovery. (soaring commodity price is actually double-edge sword. – eco growth but inflation. But it would take a long time before inflation worry set in, like when crude oil trades above $100 etc) Therefore, in the short term, strong positive correlation is expected between equity and crude oil
1100 is just a touch away! Fkli sentiment is definitely more eager than Klci in this respect. 1100 is seen as the resistance this week. Any buying above here can only be justified if fkli premium to klci is not more than 5p.
The support for this new wave is raised to 1074++.
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