Bulls or Bears, who favoured???!!!!!

The markets closed on a positive note favouring the Bulls but the Bear are confident to stop these people not to cross 5930. Does this happen??, the biggest challenge opened like the IPL season.

The Indian corporate giant Reliance (consolidated yearly sales over 2.65 lakh crores and 20,200 crore net) has huge reserves like its gas reserves, pile of cash ( more than 40,000 crs) at its disposal will become a good investment opportunity in the upcoming LTE based broadband wireless national coverage can change the Telecom industry with more M&As.  The groups foray is proved right and now their immediate focus is Telecom. The BWA auction gave a paralleled advantage for is expansion. The results of Reliance 4^th quarter is more than 75500 cr+ with 5376 cr at net, are good bur not at the GRM front. The higher crude prices helped to increase the sales but not fully reflected in the net profit. The stock is fully discounted unless there are major discoveries on gas front or on market make up front, fore seeing a great undoubted revenue flow, the stock’s Price to Earnings can cap this rise to 1070-1120 higher side under the current Nifty level. The strategic alliances made are to be converted in to operational cash flow streams.

The TCS, growth on YOY (37,325 cr) or qoq both are impressive, made its mark in improving net profit margin and the operational income growth is also decent. The global IT recovery is definitely a boost to its revenue generation. The stock hit the yearly high at 1245 but has the potential to cross with 15% on the top of it because of positive out look as they suggested growth in similar terms. So the stock is definitely a market performer bias to outperform.

The banking major, Axis bank (15,300 cr yearly income) also gave good results for this 4^th quarter with 4300 cr+ income and net profit at 1020 cr+, with improved efficiency especially in corporate banking. The EPS stood above 80 and the stock has fully priced, but can touch 1680-1720+ range when Nifty crosses 6300 level.

The Nifty is very positively closed above 5800 level baring 3 times below this level, but the weakness can be seen only below 5720 level. The markets may disapprove he RIL performance can place Nifty below 5750 level can be expected only to the close of expiry. The markets may see selling pressure due to US worries, rising crude and the negative news (lack of positive news, due to elections and tension on the out come). Incase RIL trades below 1019 level, is a bad sign not only to stock but to the market as well. The efforts of Bulls to be rebuild on some good news.