#101 Nifty Update

§  NIFTY Close:
Nifty closed at 4971 way above the expectation almost 140 points up above yesterday’s closing. All the frontline script had seen a good movement except the few like Hero Moto, Tata Steel etc.
§  IN- HOUSE Updates:
§  Today a DBS report said that India’s 2020 Growth story will be achieved at ease and the leading  sectors will be education, Infrastructure and FMCG. I agree with it because we know that most of the Indian Population is below the age of 28 at present and importance of education amongst the country is flowing high. While on other side Infrastructure is a must for all so we may see this 2 sectors booming a lot. Education stocks are on downside today as they are in news but infrastructure stocks are a good buy at CMP. Stocks like HDIL
§  HDIL Technical’s:
                                                               i.      Stock has seen a strong support around the 96 levels and its currently trading around the short-term moving averages which is a sign of consolidation. Long term investors may buy the stock with SL of 90 as RSI has given the Bullish crossover.
§  As I have been mentioning about the consumer goods company, same thing has been nicely said by HDFC Securities that  they have seen a steep rise in numbers even due to pressure in margins. The key being the rural market penetration and now they expect that commodity prices will ease which will add a cherry on the ice-cream . So I too continuously recommend to have at-least one FMCG stock in your portfolio like HUL or ITC.
§  As I have already mentioned about infrastructure in first point, I want to add more from a CITI group report that south India is the hot cake for real estate. Prices have been stable but volumes have dipped. But banglore and Chennai have seen the best volumes. Mumbai has been worst hit in the infrastructure companies so go for the companies of southern India.
§  Steel sector has been in news and today JSW Steel declared that they might have to close down plant in Karnataka due to shortage of Iron ore. Already it has been downgraded by many firms before and today it was again downgraded by almost all the firms with the revise tgt of around 500. So I recommend you guys to exit the stock
§  JSW Steel Technical’s:
All the indicators are showing bears in the driving seat. It is trading below all the moving averages which is also negative sign
CMP:610 Downside tgt- 593,463
§  Titan Industries have seen a great fall in last 3 sessions majorly due to the fall in price of gold. But fundamentally it is getting stronger because of its various new steps. Firstly they are going to introduce low profile jewellery for middle class and they are penetrating the rural areas. They are getting a first mover advantage so they will get better sales figures. Secondly, prices of eyewear and watches are hiking which will improve the margins of the company. And lastly they have tied up with the Muthoot finance company in Andhra Pradesh which will provide customers jewellery  on finance with just 20% upfront payment. And of-course rakesh jhunjhunwala has this stock so we should also have this in our portfolio.
§  Titan Technicals:
Titan has been trading in upside channel since its listing and volumes are gradually increasing. Stock has been taking strong support at 200 DEMA. So I recommend buying on each dip
CMP:212  Upside tgt: 223/240
§  English banks have got a funding gap of $3.96 trillion which is huge and to finance them they are approaching mutual funds and other financial subsidiaries. So please god help us fight the crisis otherwise we will see 4000 on NIFTY for sure.
§  On other hand people are talking about growth story of china but if u all have not read then in a City named “Wenzhou” in china, have started witnessing sub-prime crisis. In last week 9 businessmen have ran away due to debt and that has left 1000 of employers in shock. Monetary tightening has made it difficult of SME to get loan from banks so they had approach local money lenders who have charged high interest. It is said that even selling of real estate haven’t helped them to repay. So guys china may see a downfall.
§  Europe and US are trading way above the support levels on the news that IMF and world bank are ready to help the Crisis affected countries. This news have sparked the momentum in stock markets across the globe and it is expected to remain the same for few more days. So people with long cheers!!!
§  Technically NIFTY has given a False “double top” as we couldn’t get a third close today below 4900 level. Today’s session was a gap up opening , now leaving a 3 gaps . NIFTY is at very crucial level and it is totally driven by foreign markets. Expiry is near and we may even see high volatile session due to the same in next 2 days.  Stochastic has turned from the oversold zone while RSI and MACD are showing slight biasness towards bulls. But now as we even have a gap below the current level be cautious in short term investment.
NIFTY levels for 28th Sept:

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