No longer a long fall..

The Nifty has created a great concern suddenly dropping nearly by 200 points from previous week. Now the markets are moving Southwards in spite of smart money entering into prime stocks. The best thing is let the market fall to the deepest possible place, as it is a trap to bears; once it crosses 5135 buy the good stocks that have limited scope to fall. The best thing is to accumulate the out-performing sectors like pharma, auto and techs to some extent. The weak signals are not over but the hope is building by strength on the budget expectations on tax sops to corporates. As posted earlier the Reliance got support at 2390 level and closed at 2426.

The worrying factor is that that markets did not excused the slow down in the growth when the CSO announced the data. The steep fall more than 180 points damaged the short-term prospects of early recovery of Nifty. Now Nifty will advance definite, confirmed growth prospects. This provides an excellent opportunity for cherry picking in the lot. The clear signals of advance movements confirmed in software stocks like Infosys, so long it stays above 1470 favours the bulls and likely to gain over Rs 200/-, can easily cross 1749-1770, Satyam can cross 453-460 range, Wipro can cross 463. The smart money is entering in the auto sector, especially Tata Motors will run above 740 to 870 range and the rest will follow. The defensive sector Pharma will now infuse fresh momentum with the tax benefits to the R&D and the private equity players encourage our companies to expand to meet the demand of CRAMS business. The top players like Cipla and Ranbaxy started bottom building. The stocks like Dishman, Divis, Nicholas and Matrix will give 60-100 % returns in one year. So falling Nifty cause tension for those whose investments are for a week to 10 days (now forger Buy Today Sell Tomorrow story). Nobody has ever thought how dangerous it is to find a fool for the next day to buy those dumped stocks on premium for a single night holding.