The best move to consolidate….

In my earlier article, I wrote that the Nifty is taking all possible positive cues to make a big push to scale new highs but with a caution as the external turmoil is not conducive then. But the pace of journey was not identified in advance but the Nifty touched the High of 5901.65 level on16th Sep-10, Thursday and it is a clear journey from 4348.90 made a low on 31st Aug-2010, Tuesday and the going is strong.….The Nifty is taking every positive sign to push to new highs. The charts are very supporting to it above 5470 level. As of now it looks like Nifty may touch 5860 level but the journey may not be in single direction but definitely upwards till it reaches the goal. As of now I see a resistance at 5687-93 level.

....The Nifty is well placed above the previous level resistances. The external factors are supporting to move up may not carried for long from here. I anticipated a CRR hike to squeeze the excess liquidity but the RBI opted for Repo hike and reverse Repo hikes is a blessing in disguise. This gave a thumping support to banking stocks and reality stocks. The Reliance up move is a good supportive move to Nifty and squaring of shorts in the counter is helping the Nifty to stay afloat at every new high.
The SAIL and Tata Steel chiefs are finding the difficulty without considering the investment cost while allocating the 25% profits to the locals of the mining area. The Jindal power is investing close to 13000 crs for its 2400MW power project in Raigarh and Bajaj Hindustan already in setting up of 2430MW power projects with is bagasse is raw material is also planning to invest 10000 crs for its coal based 1980 MW power project in UP. The large groups are seriously participating in setting up of power generation projects to meet the future needs apart from the traditional existing power generation houses.