Scams at top….

The regular readers might have noticed the levels suggested and people close to me understood that the Nifty touched 5780 the number suggested earlier when the Nifty was at 6300 level. As a matter of fact this support came with lots of riders attached to it like the Banking scam and the reality malpractices with thousands of crores involved in the process.

 The Nifty is taken a sharp cut with bad news but the consoling point is that the volumes during fall are not high. This could be good news to Bulls. The Nifty is has maintained a good support at the current levels may offer a bounce to 6070 or even upto 6130-40 level.

The markets may see a long time before it forgets the taste of bad news and the sleepless nights to bulls. It is surprising that might have again recognized that the tops carry scams. So many analysts said that the markets are going to top and likely to go even higher as there is no malpractice involved in the system but shear FII money is driving the markets up. This is some extent true that the liquidity pour in emerging markets especially countries like India are attracting large chunk of share.

The readers might have noticed the choppy days in these days coupled with the scam news are the symbols of market sentiment the behavior at the top and the bottom which may offer a chance to bargain hunters.

The quality stocks are maintaining their values despite the erosion in the Nifty levels, the classic example of HDFC and the HDFC bank. Now the ICICI is making its entry. 

Now the challenge left to bears to see these get tainted by fall or the Bulls shall paint a rosy picture by taking the HDFC above 728 level and HDFCBank above 2440 level. The bad news may get diluted and Nifty gain strength once ITC trades above 183 level. The Infy has given a classic u shape formation in IT space, Wipro is in reverse to Infy. The TCS has to trade above 1079 level to see the positive news for Bulls. The Nifty is having good support at the bottom level below 100 points to 5800 level.

The markets favourite scrips now are Bharti, Coal India, Rpower, Tata power, Pharma and FMCG. At this juncture Nifty is at cross roads despite a 700 points dive from a peak of 6340 level. The bears may exert press if Nifty fails to bounce now to and stay above 5980 level.