The bears are making nightmares to bulls across the globe triggering one exchange to other as the deeper cuts in the valuations diminishing the hopes of revival. The fall is so deep that the bounce is expected on the normal front. The Bears are so strong at this juncture to dictate the technical’s to favour them.
The Nifty is well below the bouncing level, to avoid further damage, Nifty has to bounce with local DII support. The FIIs are withdrawing more than 1500 crs each day and from 10th May the out flow was close to 700 crores for our markets. The Nifty has to cross and close above 4865 level to give breather to Bulls to make some fight, though looks a loosing battle. Now The Nifty is trading at the Sep-09 levels that came from a high of 5400 level a month ago. The fall is hard to digest but offering good blue chips at through away prices. Any way which side are you?.
The Nifty is not favouring Bulls even to give hopes unless it trades above 4925 level for now. The RIL has to stay above 1001-04 level and the Infosys has to trade above 2569 level. The SBI, most favoured in the PSU lot has to trade above 2187-93 level. The bear hug counters like Sesa Goa, ster, Hindalco, Sail and Tata steel are good for bottom fishing as they lost more than 15-20%.
The TataMotors may bounce with vengeance when it trades above 695 levels. The banking lot may again Bulls support once the markets back in to positive territory above 4945. The bargain hunting and accumulation is possible in telecos and the Reality infra may get support at lower levels from these levels.
Wednesday, May 26, 2010
Tuesday, May 25, 2010
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.
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.
Monday, May 24, 2010
The recovery is FOR SURE …….
The readers might noticed that it is a big opportunity to buy blue chips at this level as this is anticipated due to the global economic crisis resulted correction.
The markets across the globe proffered profit booking at the cost of Greece. The emerging markets are attracting more FII inflow from the west. The foreigners want the available opportunity to build their positions as the growth rate is close to 9% in India. The inflation concern is not mitigated by the policy efforts.
As I mentioned in my earlier posting….The short term traders buying at lower levels shall enter the markets at 4830-40 level which may become rock bottom support for Nifty…. The Nifty is well positioned to go to next level from the base support at 4830-40 level to 5080 first and may face serious resistance at 5140-46 level.
The Ambani brothers burying the rivalry is positive to markets as the fear of counter part action as a threat or a challenge is reduced to minimal is maximum support to bulls. The RIL is finding difficult to trade above 1018-20 level is negative sign but tomorrow markets may cover the journey with ease. The ONGC stellar movement saved the Nifty falling to deeper levels will also help it to scale up to higher levels without facing much resistance. The ONGC now may stay above 1055 level with out any difficulty.
The metals corrected deeply on account of slowing demand from China may get support in coming months as the economic recovery is sustained and the earnings strength is visible to the markets can offer decent valuations. The TataSteel is likely to touch 586-78 level, the TataMotors may touch 765 with ease.
The markets across the globe proffered profit booking at the cost of Greece. The emerging markets are attracting more FII inflow from the west. The foreigners want the available opportunity to build their positions as the growth rate is close to 9% in India. The inflation concern is not mitigated by the policy efforts.
As I mentioned in my earlier posting….The short term traders buying at lower levels shall enter the markets at 4830-40 level which may become rock bottom support for Nifty…. The Nifty is well positioned to go to next level from the base support at 4830-40 level to 5080 first and may face serious resistance at 5140-46 level.
The Ambani brothers burying the rivalry is positive to markets as the fear of counter part action as a threat or a challenge is reduced to minimal is maximum support to bulls. The RIL is finding difficult to trade above 1018-20 level is negative sign but tomorrow markets may cover the journey with ease. The ONGC stellar movement saved the Nifty falling to deeper levels will also help it to scale up to higher levels without facing much resistance. The ONGC now may stay above 1055 level with out any difficulty.
The metals corrected deeply on account of slowing demand from China may get support in coming months as the economic recovery is sustained and the earnings strength is visible to the markets can offer decent valuations. The TataSteel is likely to touch 586-78 level, the TataMotors may touch 765 with ease.
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