#59 Nifty Update

NIFTY still in shock of RBI policy. NIFTY closed at 5546 after opening positive at 5588.  Fundamentally market does not have anything to cheer for so market purely trading on Technical levels. LT finance holding IPO opened today and closes on 29th july with price band of 51 to 59. IPO seems attractive but i feel its lil risky on such choppy situation of market but long term investors can surely subscribe to it. Talking about BHEL, company has posted good results but it was below expectation. Stock was down 4% consecutively for 2cd day. BHEL has support around 1732 so i recommend to buy on DIPS. Coal India is outperforming market. It is going to be introduce in F&O segment soon and Mining industry is expecting good reforms from the ministry so I recommend to buy stock on dips for portfolio pick with holding period  of 6months to 2 years. RBI policy came as shocking to the investors and generally public yesterday but a nice explanation was given by a RBI official in “MINT” today. he said when inflation is roaring you need to control either side of it i.e., supply or demand. nothing special was done by government to increase supply so RBI had to increase rates to control demand. And i think he was right because unless and until demand is not equal to supply you cannot control rise in price. Technically speaking market closed below 200 DEMA for 2cd consecutive day. RSI and Stochastic are signaling strength for bulls and might fill up the gap of 5350 in next expiry. Expect July expiry to between 5450-5582.
NIFTY levels for 28th July:-
R-5567             S-5525
R-5686             S-5508
R-5616             S-5472
R-5636             S-5442

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