THE WEAK BOTTOMS MADE.......!!!!!!!!

It is difficult to predict the market at this juncture because of the relentless selling by the Bear for a serious reason that the RBI, as a matter of fact the Govt. in power wanted to be in power again by controlling the inflation. The spiraling inflation is a night mare to many, especially for the central bank chief.
The big news now is the fall of crude to touch the 100 dollar mark from its peak.The Govt is in a fix to increase the selling price of bear the loss as it is?.The mouth pies are accepting the rise but it will impact the economy badly at this critical juncture. The cost of funds putting lot of pressure on the expansion plans and the country may miss the opportunity developing across the globe to export. the exports are picking up in strides with 35% growth may get dampened by the shelfing of the growth plan to drawing room.The commodity fall is good to certain extent, it will reduce the input cost but beyond a point it impacts the inventory cost and company's final product selling price. It is very likely that the consumer may post pone the buying may change the whole scenario.
The election results will decide the trend and couple of ministers portfolio changes are expected at the center. The Congress party is preparing for a comeback into power, is a challenge for them to please the common man and the corporates.
The pressure of selling in Nifty has been well absorbed by the FII in the bottom layer. The FII buying at the bottom supports is a good sign but not sufficient to lift the markets from the sagging bottoms. The Nifty has a series of resistances right from 5600,5640,5720 and at 5785.The bottom support for now is ok with 5400 level but the selling in banks and RIL can become disastrous as the bull unwinding will start below these level. The fundamental challenge is now with the RIL and HDFC. The under performance of these counters for any longer can change the sentiment from bad to worse.
The ITC the one time Bull grip stock finding no buyers at 180 level may lead it to 166-69 level. The RBI rate hike can be counterbalanced with positive policy announcements. Now the light at the other end of the tunnel is with new banking licenses and the permissions to insurance company's listing and hiking FDI limit.
the long term bull market story will be in books unless Nifty trades above 5820-40 level in next couple of months.