The BULLS charged WELL ?....

The Indian markets enjoyed the best part of market capitalization rise with positive outlook of economy, negligible damage of  Japans’ disaster and the positive out look of US. The Warrenbuffett visit and his BIG dream of India made an upsurge in the whole scenario, though temporary but the impact is decent.  

The Indian auto mobile zoooom is continuing unabated. The largest passenger vehicle manufacturer Maruti made impressive rise above 22%, TataMotors above 11%, M&M above 18& and the two wheeler manufacturers also posted above 20% growth YOY is a very positive sign despite of constraints and rate hikes. The challenge ahead is to maintain the growth in view of the Japan,s components supply disruptions.

The Textile industry has got the Govt favour by more than 7400 crs than earlier year for TUF and the industry is also doing well. The rising of cost of cotton is more than anticipated at raw material front which is the highest in the last decade. After decades of waiting, the promoters of major textiles companies are interested to take advantage of the uptrend in the business cycle like Arvind, Naharspinning, Aditya Birla Nuvo, Digjam and Ginnifilaments.

The Nifty has surprised many while scaling to 5850 level from 5300 level as there is no single stop in the journey. The traders who used to go short after 3 days got trapped and now struggling to manage. The rise in the stock markets is a global phenomenon; the bulls trapped the bears at the bottom layer of this upsurge when the Japans tragedy is prevalent in news. But the so called negative news was not vanished as the crude is surging, gold and silver are at non stop mode , the raw material cost of many industries is burgeoning creates supply side inflation. The aftermath calculations/impact of Japan earth quake, repercussions of weak global especially EU economy is a big challenge to stock markets to grow further from these levels.

The Individual names like Reliance and ONGC are in bull grip and the technology stocks are in buying mode with a positive outlook can keep the markets to float above 5680 level. Now the challenge is whether to take the Nifty to next level being bulls in full control of the situation or Bull may be trapped at higher levels bruise beating by Bears taking advantage of the global economic weakness.