NIFTY strength gains, momentum weakens…

The Indian markets are displaying very good strength in building the bottom but the rapid rise of the top is not getting the support from the buyers. The Buyers are more willing to buy and accumulate the blue chip stocks at bottom level of Nifty at 4800-4900. The same kind of buying support is not coming at the higher level despite of some good news flowing into the streets.

The Indian economy is more independently dependant on the RAIN GOD. Our success story is built on the local consumption and the production. Still we are an agrarian country despite of our good number of export figures being supported from the IT and other manufacturing sectors.

Now our oil bill is mounting and the current account deficit is enlarging. The strengthening of dollar against Euro (for a different reason, happened) also encouraged gaining strength against other currencies. The Rupee   depreciation rather encouraged/accepted by the economy experts (to a level upto Rs54) from the 48-49 rage. For now the traders are heavily betting on the fall.  The situation turned so bad that now fire fighting measures are happening from North block and RBI to save Rupee slide.

The Nifty technically in bulls grip and heading towards the higher range, though it is difficult to cross the hurdles around 5350-80 level. The bottom support right now holding at 5050 level. The Markets may wait for some good news from Europe and US by staying between 4950-5280 levels.

The rupee fall definitely helps the IT and ITES companies. The billing pressure due to Euro crisis can be seen after second quarter. Most of the IT companies might have booked the profits when Rupee around 55. Now the situation has worsened. But for new contracts and Pharma companies the profits will increase as they enjoy the fall.

The economy is doing well on the back of the earlier stimulus measures taken across the globe. So the Indian economy also enjoyed the injected money flow. Now the momentum is slowing down and the expansion plans are shelved or deferred for want of support.

The steel companies are expecting a price rise and Coal India is also planning to rise prices.

The worlds largest furniture maker IKEA is planning to invest Rs10,000 crs.

Suzlon sold China unit for Rs 300 cr.

The POSCO land allotment in Odissa still finding space in headlines.

RINL prefers to delay the listing.

The US bank Wells Fargo plans to swift jobs to India due to cost effectiveness, Where as Barclays India plans to trim its size of work force.

Pranab last working day as FM may send some positive signals to markets to improve the sentiment.