Waiting ..waiting .....???

The Nifty could hold above the support level of 4180-5200 due to the IT heavy weights rotation, the propping from banking and telecos, but the Reliance once again at the cross roads at 1077, ONGC closed at 1196. The recent coal gasification project in Orissa add value to Tatasteel apart from the good expected results from the steel sector in the coming quarters due the price revisions.


In case the market fails to close above 5240 tomorrow and high doesn’t cross the resistance at 5270, there is a steep correction in the offing that could drag the indices to 4900 level irrespective the corporate results. The market operators are steadily off loading their holdings at higher level is a concern. In case the Bharti, ICICI bank and Tata steel fails to get support from these levels can be considered as a bad omen to Nifty it self.

Those whose are personally accessible to me know that I recommended to buy all cotton and textile stocks in Nov- second week, precise on 12th Nov-09. Now all the stocks be it Surya Lakshmi Cotton mills, Digjam, BSL etc all are doubled. Those who can build positions for a longer period can accumulate the Infra companies for a 5 year period for decent returns-multibaggers.

For now, incase Reliance fails to trade above 1106-09, ONGC has to cross 1205-08, ICICI has to trade above 893 can consider that the markets are heading for Southwards. The banking lot is the weakest link apart from profit booking in IT counters.

The recent run-ups in the counters of cement, IT scan find some more profit taking. The counters like Grasim may get 1st support at 2635-40 but good support and bounce can be expected at 2570.

The Infra stocks are sold out despite good results from JP is due to rise in the input costs and fear ruling in the rumors of Govt. stimulus withdrawal due to high inflation. But they are the one that will catch once the market rebounds.