You like it or not it happens!

As posted on 5th May, a solid move could be possible with strong bottom building, could be possible when market touches a low of 3980 range, which happened on 11th May. The global weakness provided an opportunity to bulls, opened a 60 point negative gap but bounced back immediately. The day traders might have experienced the heat of volatility with a run up from the days low to break the highs with in half an hour of early trades.
The market touched a high of 4094 and immediately the beating of 'bears on bulls' stared with hard blows, could drag to a level of 4020 range in May series but the vigor of bulls to win, made the Nifty to trade above the safe levels at 4073 (pls.read May 5th Post). These volatile moves made the pulse rate high to many who held positions against the move, beyond conviction the hard battle is on-‘either you participate or not Or you like it or not’- it happens when the fight is fierce until one party surrenders.

As of now it seems that bears need to take a long rest for some time by covering their positions on Monday and Tuesday as the run up of Nifty above 4117 increases. The strength of bulls increases day after day as the resistance levels are crossed. The check mate to ‘Bulls’ at 4175 range has to be crossed with in two days from now.

LEADERS look Southwards!

The corporate results are good, the economic situation is comfortable, inflation is stable and the fund follows are good but the market leaders are in no good command to lead the rally as discussed in earlier posts. In fact Nifty opening trades happened above 4117 but failed to cross 4139 and lost the hope to hold the position, surprisingly touched the low at 4058 and closed weak at 4067. It is unlikely that on Friday Nifty can have a 80-100 points rally to erase the scars on the bulls face.
As of now no major damage has done to the bull move but the signs of tiredness can be seen. The Midcaps on stock specific basis will do well but the rally cannot be expected for time being.
So the global cues and Asian markets support much needed to rejuvenate Nifty to trade, other wise this weakness could see much lower levels.

A Relief rally or a Buying Support?

The efforts of bulls to bring the market from a low of 4030 to a high of 4088 could spoil if Nifty fails to trade above 4117 in the opening session of tomorrow. The brilliant come back of the industry heavy weights is a good sign and RIL honored the 1573 bottom support as posted, a crucial support for Nifty and for bulls.
The banking sector come back could read as a surprise, a hidden agenda?. Now Nifty shall not breach the 4071-73 level to make it’s bid for a new high which could happen only after the UP political issues resolved peacefully.

NIFTY heading for a correction?.

The Nifty lost the important support at 4093 and touched the low 4066 closed at 4077. To nullify the bad effect, Nifty should trade above 4113-4117 in two trading sessions, other wise bears will have better grip. The market as such not in bears grip but the party seems to be over. The banks, autos, tech, FMCG and even pharma scrips are finding difficult to stay at the current levels.
So tomorrow market should cover the losses and at least close above 4106 other wise it could be wise to half load the carry forward stocks by 50%.For tomorrow, ONGC should trade above 906-908, and as such RIL was strong till date and until it trades above 1575-1573, so is the market.

CAUTION: It seems that RIL could touch 1490-1486 range and ONGC could touch 850-845 range, ICICI at 780-770, so is BHARTI at 760 as result they will drag the Nifty to 3860 level.

Consolidation Or Dilation for time being ?.

As we discussed earlier post the Nifty should trade above 4139 piercing the 4171 resistance is the precondition to test new high. It looks that it may take a week to break the barriers. For tomorrow RIL should trade above the resistance 1612 and low should be above 1603. ONGC should trade above 928
The chances of Nifty moving forward nullified by the Tech and Auto mobile drags. So it seems Nifty could test 4040 level.

The Investment World loves INDIA.

The interest of the FII’s to invest in India especially in Reality sector and Infrastructure which has great potential to reward its investors in future. The opportunities in India are expanding due to it’ wide spread of geographical area and it population at one time a drag now turned to positive asset. The Indian MF’s are having great say on the market movement in line with the FIIs. The leadership maintained Reliance MF with Rs 48,828 crores followed by Rs 42,268 crores by ICICI Prudential. So the dedicated money raised overseas for India and the ever raising investing culture in stocks in India has generated great potential to the Indian stocks. For every 500-600 points fall there will be dedicated fund provide support because of the future growth story is intact and the performance was no less.

The world will be at our “finger point - press”, So the long term bet be on Telecom with 3-G, soon be a reality in India and the broad band services will become a basic necessity. The best Long term bets will be Bharti, RCOM and MTNL.