The inevitable fall…..

The day aggrivated the woes of Bulls as the Germany banned the naked short selling in addition to the Euro issue, as the fall is free below 5030-5025 level. As a matter of fact, I suggested to take a closer look as the Nifty is going to be capped at 5230 level as the sentiment got hurted and it takes longer time to get healed. …..The severe fall as expected..??? the Nifty lowers levels are expected but the reasons for the fall are moreserious than the technicals. The heavy weights now will follow the trend and weigh pressure on the Nifty. If this happens then the Nifty is capped at 5220 for some time now…..



The scar is deep…..!!!....The dent made ion the head of Nifty is deep enough that could consume longer period to cure. The situation is ripe for the Bulls only when the Nifty bounces from 4680 level. But to eliminate the retail shorts Nifty rose steeply from 4985 to 5200 level.
The positive sentiment building in the market and the accumulation at lower levels is the order of the days a head. The country is likely to enjoy huge FII inflow as the gates are now open to 3-G and the Govt is very happy to announce favouarable policy matters as they have garnered more than Rs 67,500 crores and it is far more than the anticipated numbers at 42,000-45,000 crores. The telecos will get the investment support as the 3G offers more more services linked to VAS, is the emerging big market opportunity in the second largest populated emerging economy. The telecos revenues for next decade is assured with cummulative/ incremental growth at the revenue front and at the bottoline though the strain on finanacial in the next two years of launch is not ruledout.The RCOM emerged winner in 13 circles where as Bharti paid the best price for creamy spots and the Vadafone is second best paid. Now the game of Mergers and Acquisition will open a new turf which is not ruled out as the rollout starts.
The ICICI bank is buying Bank of Rajastan is now confirmed, few months before news channels analysed the Tayal's situation, but the price is in favour of BoR will dampen the up move for some time. The ICICI will find selling pressure at 889-898 level for time being. The Bharti bottom building is happed at 254-58 level shall hold good and shall get investor support to take it above 272 level to negate the bear pressure as the stock fell from 298 to 254 in 4 straight trading sessios. The Reliance likely to enjoy one more favourable policy suppot for its natural gas APM, so the stock shall close above 1030 in next two sessions to negate the journey to touch 930 level. The Govt. is ready to increase the administered price of natural gas is going to be 6.2 dollars from 4.2 mmbtu. The ONGC is also get support at lower level and shall cross 1039 to make the Nifty floating above 4870 level which may touch tomorrow in the intraday and shall bounce back above 4930 to keep our market as strong from the rest. The short term traders buying at lower levels shall enter the markets at 4830-40 level which may become rock bottom support for Nifty from which the Bulls relentlessly pulled the market to 5380 level. So the Bulls will protect their boundaries.