The fight for survival…..

The day displayed a strong fight for survival of the market at 2650 level. As posted earlier the high light of the day is the smart recovery of SBI to close above 1085. The RIL is struggling to gain strength to move up but it displayed a decent fight against the Bears. The ONGC and Bharti were subdued despite good effort by the Banking lot to move up. The star of the day is Tata Steel posted 10% rise with huge volume and the DLF made equal volume with good show to cross the 191-93 resistance. The LIC Housing along and SUN gave above 20% rise in the non index shares is a clear sign of shuffling and choosing the future out performers.

The techs lost the sheen due to foreign brokerage house CLSA report dented the growth in share rise, Infosys chopped down by 4.3% Wipro TCS and Satyam were no exception. The teleco lost value by 3-5% but the autos recovered on short covering. The Banking sector posted decent gains on the hopes of fall in inflation that can force the Central bank to take an early decision on rate cuts.

The Nifty is at cross roads and waiting for break out. In case the RIL fails to cross the 1093 level and trades below 1040-35 then the markets will easily touch the 2000-2100 level with out much resistance from Bulls. The SBI gained but the RIL, ONGC and Bharti are in negative territory with new members from tech sector. The Nifty is weak below 2670-80 level but gain strength above 2705-11 that can fuel fire in Bulls to trap the Bears to cover their positions.

In case BHEL and LT recovers then there was some glimmer of hope in the capital goods and Infrastructure sector that build due to the NHAI announcements.