The life in the Indian markets was displayed as expected in the previous post. …..The immediate first aid help to markets considered completed when Nifty crosses the 2680 level…….The makets moved in the last 45 minutes to surprise the bears and closed at 2693 level and touched a high of 2718.60. The markets displayed the strength but the volume is nothing special to mentions. The move is to threaten the bears and to display the inherent zeal to buy at the rock bottom levels.
The money inflow to mutual funds is a positive signal, the recovery in the global markets along with India may continue for some time unless some thing unusual catches the headlines.
The DLF belied the expected move to cross the 236 level but accepted the resistance at 219 and made a journey to touch 180 is a negative signal that to with huge volume despite the buy back at 600 was on. The real estate sector as a whole will see a subdued life for another two years as they are grossly depended on the FII shopping, HNIs and the NRIs. So those who want to wait and continue to buy at lower levels irrespective of the price can choose the sector as it has higher value to unfold in future but the near-term is bleak.
The plan of the Govt. to spend on infra structure was good but the life of the govt is too little to make a change. So this can generate hope but the actualized benefits are small.
The Nifty has made a decent bottom at the 2500-50 level, unless broken that support and SBI trades below 1085-90 level, the upward journey is likely to continue till 2930 is reached. The tiggers for the up move basically short covering and the positive news flow from the globe.
Sunday, November 23, 2008
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