#136 Nifty Update: "Mission NIFTY 5216 Accomplished"

My post on 23rd Aug titled “Choona na Choona na aab mein overbought ho Gayi” i initiated short on NIFTY at 5420 with various tgts, last being 5216 which was accomplished today.Today NIFTY made a low of 5215.70 jst at my tgt of 5216. This down-slide was accompanied by “Coalgate” scam and weak Manufacturing numbers from Global markets. But to note some +veness in the market is the Retail Sales in US and Europe and the consumer spending index last week. Both has shown some improvement which is gud sign. While on other side Service PMI has also seen some significant grwth bt all are still below 50 level mark signifying recession. Its said whn economy takes a turn around , consumer retail sector leads the recovery. So we can say that consumer confidence is increasing and thts a good sign for the world markets. On other side labour productivity index has increased to 2.2% which is giving a strong base to retail confidence. Labour expense has also increase by 1.5% which inturn gives more purchasing power in hands of retail consumer. The cycle will be once again supplied with money at lower level whch will demand more goods which will affect the profit on companies balance sheet. Fire has been initiated , nw we have to wait for it to spread around the world. Now looking at capital good or heavy equipment markets, Car sales arnd the world has seen reboost growth of almost 10% except in Europe which is also a good sign. Talking about the hot topic EU, it could be saved nxt week and Draghi wld be the hero. He has said tht no limits to Bond purchase bt will surely take care no printing of money. So now lets wait for his plan tomorrow but we are pretty sure he will take step to save EURO.Cutting short my post lets come to technicals. Technically Nifty is in small downside channel but today it has filled up the gap at 5220 which was left unfilled in last rally. Taking into consideration Draghi plan we may see some boost from tomorrow. But NIFTY has traded and closed below 50 EMA today which is at 5261 so is the upside channel line. 100 EMA is at 5211 which is acting as a strong support. So next strategy on NIFTY would be on breakout of range of 5211-5261. Take position in the breakout direction, NIFTY supports at 5211,5198,5181,5160. Resistances at 5261,5291,5306,5332,5360

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