Ahead of Nifty…..

The Nifty has recovered from the lows of the day with a negative opening to a bumper buying placed the Nifty to close at its day’s high. The Nifty took the advantage of both the short covering, coupled with buying made buy the smart money in a quiet manner that was against to the global movements of the day there by surprising many.

The positive news that pulled up the indices was on the news that the IAEA has agreed in principle to the draft recommendations and conditions proposed by INDIA. The specific news worth of more than 1 lakh crores lured the well informed HNIs and the fund managers to grab the opportunity. The 3G spectrum guidelines and the proposed number portability also added fuel to the fire. The rise is not the question at this point in time but the sustainability of the up move.

The Nifty could place itself comfortably trade above 4100 which is the major support for all practical purposes in the short term. The short-term support exists for Monday at above 4350 level and the second one at 4320 level but fall in any case arises shall be used for buying and the Nifty could touch & cross 4685 level in the very near term. The earlier suggested bottom supports valid as there was no violation.

The concern in tightening of money supply in the system is not seriously viewed by the industry but the cost of getting those funds could adversely impact the growth plans especially the reality, infra and the automobile sectors.
In my earlier write up tilted: The Asian meltdown….. mentioned about Bharti and today “The Business Line” covered a detailed scrip analysis in “Investment Focus”.
The telecom stocks will rise as the 3G auction is all set to take place in a month or two and Bharti is good for del. above 750 levels, but for today it is very likely that it will be available at 703-06 or even below that support level. On 15-07-08, Bharti low was at 695 and closed at 710.)