NIFTY non -stop rise... but....

The markets managed to stay above 5650 level but the external EURO crisis is not over. The Nifty is took some pause after 5 weeks of non stop rise from 5215 level registered on 5^th Sep-12 to a level of 5815 on 5^th Oct-12. A steep rise of 600 points, close to 12%. Yesterday it closed at 5676 level.

The Nifty is in strong Bull grip. Most of the under performing stocks are now catching up. The metal stocks are also participating despite of their anticipated tepid results. I believe the Infy results are good but the anticipation/expectation from the huge cash pile up reserves are not made full utilization, has a dent on the stock performance. The recent purchase of Lodestone to add some more new clients and new revenue stream. The  CFO- Bala is being groomed to the top slot. The management changes are going to cap at the recent rise at 2650 level. The stock will gain some support for now at 2335 level at first level and 2229-25 at the second level. The upper side resistance is at 2548-64 level. For now the strategy is to sell and buy from the resistance levl. I believe the selling can be started from 2485 level to cover at 2250 level. The markets are for now taken some accumulation period around 5500 level. The reforms are driving the market rather than the performance of the corporate sector. The RBI is going to provide some rate cut relief much needed for the capital intensive sectors. The expansion plans are hold may start resume. The Govt spending has been focused on rural infra structure. So the rural economy is growing and the income levels are rising for spending. So the retail sector is going to take the advantage of the push. If we clearly go back and study the programmes, we can understand the policy reform changes and the growth opportunity sectors…..