Clouded Fears..

The Nifty lost all the gains made in the opening due to the fears developed in the minds of the investors as the Europe may find it difficult to maintain the growth and the debt serviceability. The global integration is a good sign for the economy as a whole but at times of these developments cripple the emerging markets even though they are not party to the crisis but bear the burnt. India is a classic case that fits in the example despite the fact that we are growing independently and locally with our resources but the stock markets are well fabricated with global developments as much of the investments are from the FIIs.
United we strong is the clear message from the markets to Anil and Mukesh. The Reliance group saved the day from getting the Nifty into red. The markets supported the group by 18000 crores richer capitalization. The future discussions and agreements of those group developments will lead the course of action in the stocks.
The early gains are basically from the contributions from the Ambani stocks and the spill over effect to the other stocks. As the day progressed, the markets found the difficulty in maintaining the levels with the inflow of selling pressure, pared the early gains, slipped in to red before closing the day. The opening of the Europe, the epicenter of the current crisis did not opened with a bang on the positive clues from Asia. The western analysts are with gloomy outlook shadowed the clouds of fear at the end of the day, so the markets lost the sheen with late selling pushed the indices down and bulls took a back seat for the day.
The CRISIL research report says that 3G market is well poised for a big leap in the ARPU and in the subscriber base as the estimated investments of 2.6 lakh crores are offing for next 5 years. The industry experts are bearing a view that the Telecom sector is heading for a major consolidation. This view can be accelerated with the rumors that Mukesh is planning for re-entry into the sector. In my earlier published article expressed the view that the Indian operators are willing to pay more to 3G license so that they can bargain a better deal from the foreign companies, planning to enter India.
The major concern now for the government is to tame the rising inflation. The economic growth is being crippled y the inflation at higher levels as the net gains are negligible. The Nifty has to trade above 4965 level and the low shall not breach 4911. The RIL is good above 1018 level and the bears gain strength below 1004-1000 level.
The markets can get the support of Bulls once the Infosys trades above 2650 and the stock will gain momentum above 2685 level. The SBI, a bull grip stock shall trade above 2310-15 level gives positive signals to over all market. In case the recent rally in ONGC is wiped out, the stock trades below 1036 level and red flag can be raised as a caution once it trades below 1050-55 level.
The metal sector is losing the fancy can gain the strength once the woes of mining companies are over. The Sesa Goa has to trade above 360 level to mitigate the negative impact. The Tatasteel has to trade above 529 with the opening above 525.