NIFTY is also fasting and supporting ANNA HAZARE movement with downside by almost 100 points at 4845. Dabbawala’s from mumbai for the first time ever since 120 years had closed down there service in the support of ANNA Hazare. Strong bearish sentiments are prevailing all over the world. Yesterday US jobless data were announced which were far below then expectations which led US with downside opening at 5% and Europe to close down by 4%. Today NIFTY also opened gap down on global recession weakness fear. Food inflation was at 9% and fuel inflation at 13% which was announced yesterday and FM says it is not the level the expected. He is expecting food inflation to ease after better monsoon. CNBC flashed that it expect RBI to incerease 25 bps next month to curb inflation but i feel RBI will stop rate hike as they had raised double then expected last time and inflation has ease a lil bit this month. SAIL in consortium with TATASTEEL, NMDC, JSWSteel and Jindal steel are applying for the bid of Iron ore in Afghanistan with iron ore content of 1.8 million tonne. China is the major competitor in this bid and Indian government wants to win over them to avoid competition in future. Official says this will be a good move to fill up the iron ore deficit of indian Demand. Coal India is also a fundamentally good company to invest as out of 418 MT demand of coal per year in India. 320 MT is provided by Coal India alone. So as i mentioned yesterday NTPC along with Coal India and SAIL are the PSU stocks to look at current levels for portfolio picks. Technically speaking today achieved my target of 4800. Market had took a great support at 4832 which was 200 Weekly average..It had slipped below that level but close above in the end. I just compared the downfall of 2008 and 2011. I marked that there were no gap down openings in 2008 while now we have 2 gaps at 4898 and 5230 which are unfilled. As we have noticed that gaps are strong significant indicators i feel we might see some short term recovery if the market stays above 4800 next week. If NIFTY breaks 4800 on closing basis then 3rd possibility on my elliot wave graph as stated on 7th August post, we may see 4300 levels. So i would suggest to book 75% profit on Short NIFTY and start buying 20% of your long term porfolio.
NIFTY levels for 22cd August:-