The crucial support…..

The markets took support to bounce back from the day’s lows to close at day’s high is a clear bullish sign. The results of RIL and other major companies results shall be discounted at current levels is debatable. The internal demand for infra structure, construction and related activities were grossly stalled for want of Govt direction and the 3-G auction and other related policy decisions were put on hold will see light after the new budget. The list can be enlarged but the fact is that they store potential for sustained growth by meeting the internal demand.

The RIL results are not good on the face of it as the other income has increased considerably to 993 cr and the purchase of traded goods has increased from 590cr to 5807cr during this year. The other income and profit from exceptional items has contributed 1363 cr nearly 25% of the profits from operations. The future out look is bright due to KG basin oil & gas may hold the price and the RPL merger may add value but the upside is definitely capped for a quarter at least. The stock has very good support at 1530 level. Any dip below this is a buying opportunity as the support at 1330 level may not breach under present conditions.

The Rel Infra results are good under these difficult times. The R Power news flow is good as many projects are in pipe line, RNRL results are good. The HDFC bank results are good but it says that the NPAs may increase due to the economic slow down is a cause of concern.

The inflation was at 0.26% when compared to the last week gave good signs of relief to the RBI as it plans to induce more money into the system to spur the demand as the estimates of growth was pegged at 6% much below the regularly suggested levels of 8%-few months later7.5%- few weeks later it was at 7% and now the latest figure.

For today the Nifty has to trade above 3381 level to continue the up trend. The street reaction on RIL results hold key. The yesterday levels are for RIL, Rel Infra. As such there no serious change in the levels as they were discussed earlier. The ICICI has to face resistance at 442-39 level but the support exists at 415 level. The Relcap may face resistance at 549-51 level.

Today BEL, CIPLA,IDBI, Ranbaxy, Maruti will announce their numbers.

Market PULSE check by Stock-O-Meter: The Following scrips covered in my morning posting:
Nifty 3439.90 3310.5 3423.70
ICICIBANK 431.60 395.10 424.40
RIL 1774.90 1696 1763.70
REL infra 716.65 662.10 712.35
Rel Cap 535.60 496.05 531.80
DLF 240.7 222.40 238.05
HDIL 147.25 124.15 144.85
HDFCBANK 1100 1065.40 1092.50
T.STEEL 266.35 238.65 262.85
SAIL 116.40 106.50 115.10
I may be right or wrong-“No argument with the ticker-NEVER”