The Bulls diehard effort to keep the indices in positive territory was spoiled by the IT bellwether weak results and the top brass churning. The numbers are weak but excusable in any give other scenario than this time, cost an wealth erosion of close to 10% in a single session. The rupee strengthen in the lat quarter added fuel to fire for this disappointment for other mid-cap IT’s.
Mr. MohanDas Pai, the missed stalwart of Infosys, jolted the company and the news maker at many a time, confronted for top slot but now decided to pursue his dream passion after the long drawn aspire to be a CEO ended. The diminishing light of hope on a D-day triggered for new avenues in the emerging country like India to one’s worth.
As far as numbers language is concerned, Nifty is good for Bulls when it trades above or in the range of 5820-75 with an upward bias. The Nifty is being guided in a band of 5440-6030 for at least the elections results and the popular mandate is tested. There is no doubt that the ruling Govt. There is a tight band move of 5300-5775 range for above close to 45 days is now the biggest challenge for the bears to crack the fort. The recent developments in the Europe and the rising inflation in India are headwinds for the rise. The Infosys spooked the hopes of the Bulls though the Global IT scenario looks bright.
The BRICS meeting and there on the Nuclear deals with Kazakhstan shall bring some hope to energy sector. The trade relations among the BRICS and the local currency transactions shall weaken the dollar further may offer more trouble to US dominance.
The Reliance is now in a very narrow band of 1210 to 980 range for quite long time may spur a war between the Bulls and Bears as the weightage in Nifty is an advantage to Bears, may bring this to 875-860 level that may pull the Nifty to lower levels.
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