The cemented move…

There was no change in the economic out look of the globe or any country in specific but the stocks are moving North. It is the beauty of the markets that it behaves in style and unique. For those who argue the ticker will be side lined to curse the fate or to make a point of discussion but the ticker will journey the designed course irrespective of the tag that was attached “bear market rally/huge short covering/ bull market in the making”.

The slow economic growth was not fully discounted across the globe. The Indian markets were no exception but the rally triggered after the expiry will take Nifty to 3280 level because of the crude hardening. The rise crude prices will strengthen the RIL, ONGC and RPL. The RIL may start production of KG basin resources.

The readers might have observed the Cement companies move that benefited the most in the Stimulus package-2. The markets are enjoying the short covering support above 3080 level. The earlier suggested levels for ICICI Bank and Relcap were achied but the up move could be a result of short covering.

Now the markets are in bull grip as the momentum was not dried to fall. The Nifty is good above 3100 level and RIL god above 1329-31 level. The SBI is good above 1350 and weak below 1330-26 level. The sudden change in the direction of Bharti to 650 level from its 720 level despite the 24.41 lakh shares acquiring by Indian Continent Investment Ltd in an off market deal. In case Bharti falls below 610 then a serios correction of 20-25% on the cards. The NTPC, ONGC, ITC, Bharti, and Cipla are likely to lead the fall incase Nifty closes below 3030 level.