The bulls took charge of the last two days of the week. The FO closing gave good support to push the Nifty to higher levels. The Nifty levels above 5450 level is neutral but the challenge lies a head above 5520 level. The previous support 5460 which has become a platform for bulls now became a line of battle.
The strong move of Nifty heavy weights like Reliance from 906 to 953 level and ONGC fro 261 to 285 level and the metals have propping support. The surprising but heaving beating took place in one time favourate counter like TataMotors is a sign of tiredness of hope and the weakness of strength in Nifty.
The Rpower shown a big jump in its operations and bottom line is a cut attached from Relinfra. The ADAG companies are extremely nervous withier top boss position and the financial well being. It was not written any where but the 2G scam is hunching on the fall of empire in the whirl wind of turmoil. The food inflation is increasing and the growth targets are being contracted going forward. The highest growth that can be expected around 8.5% in the forthcoming years may be most challenging to the incumbent Govt to face the general election. The opposition is fall short of funds and popularism may form a united combat.
The economy as such is doing well and the Nifty on the long term trend is good. The Most difficult situation for bulls to keep nifty above 5800 level, so is the difficult task to bears to run the Nifty below 5280 level for some time. The task at this juncture looks easy for bears to crack the barrier but that is as well a mounting task. The monsoon touched the NW coast early and the onset is on time. Now the biggest guess is the spread across the country and the flood situation in some parts.
So the Nifty for now is well placed above 5360 as a bottom and the building of bottom on pessimism is taking place. The run to 5685 may not be so easy but the path going forward looks to that direction. The individual stock performances on their capacity of the results announced and the outlook to do well in future may get support at these levels or get hammered to adjust shape by the Push and Pull of Bulls and Bears.
The Reliance is struggling hard to find gas in KG basin so is the investor support. The Tatasteel did well at home but the foreign woes are deep to describe. The ONGC may see some support on disinvestment mat touch 296-298 level but get selling supply above 304 level. The DLF is making news with its reality asset bank but the stock may find difficult to stay above 250 level.
