Nifty

#113 Nifty Update: Pranab "Mukher" gaya

NIFTY Shorts which i had recommend around 5500 it still holds. Budget didnt bring any surprises for investors rather it was disappointing if you analyze it properly. Pranab “Mukher”gaya apne vado se… He may have announced some good norms for mining sector but for overall public it was disappointment. Now they are thinking of reducing subsidy of fuel which indirectly will bring burden on retail users. Secondly, he has increased duties on vehicles which companies have proposed to pass on to the customer. Thirdly, 10% more increase in food price will bring 30million more indian below poverty line. Fourthly, inspite for easing FII entry it has made more difficult or more clause has been added which will restrict foreign entries. This was just the overview which i understood but if you ask Chartered Accountants they will answer you in more detail. Technically studying the markets, NIFTY was  in a downside channel even before budget day as i have marked above. Technically it gave a confirmation on close on budget day that it has more downside. HOW??? You could see that market closed below short term moving averages (multi color) on budget day and next day it opened and traded below that levels. So that was one more bearish side complimenting the channel move. But we may see final confirmation in this week when MACD which is at central line may confirm downside if we see some pressure tomorrow. I still recommend to hold your shorts of 5500 and add more shorts below 5156 which is the 200 SMA. Book loss in Profit on upside if market comes around 5380. Jai Ho

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