Nifty

#78 Nifty Update

Happy Janmashtami!!!!! Finally NIFTY has given a sign of reversal on the birthday of Lord Krishna. NIFTY opened flat at 4853 on mixed global cues and then with had some range bound market in the morning but then with weak europe opening we saw low at around 4815 levels. But foreign markets recovered after the early trade and NIFTY got a little spark which it was waiting for last few trading session to recover almost 100 points from the low to close at 4898 up by 53 points… Most of you might be gambling in teen patti but i bet if u had gamble on stocks today you would have earned more 😉 :P. Experts says that recession is almost confirmed in US and Europe but you may not see sudden downfall rather new lows each day. The root cause of current market situation is GREECE. People close to European Union says that greece was fudged in the Union. At the time of Joining fiscal deficit of greece was more than 3% of GDP which is a violation of a rule to be EU member but still Greece was considered as people thought that Greece would excel. Debt to GDP ratio stands at 140% at present and its expected to reach 160% by 2012 in greece which is considered to be too high. Only reason for greece to save themselves is to grow at 7% by 2012 which is next to impossible with current growth at just 3.5%. Why the hell was greece taken into the Union??? Talking about the US economy they have seen a projected high growths than they can actually get and have printed dollars as and when they want which has resulted in deflation. Talking about india, current valuation of stocks are attractive and one should start shopping. Most attractive valuation as per me are of Steel stocks… Now you would ask y??? An article mentioned that from 2005-2010 China increased its steel producing capacity from 330 MT to 640 MT while India just moved from 45MT to 66MT and our imports have also increased from 7MT to 11 MT. From above sentence we can Interpret that Steel demand is more then supply in India so steel company will have advantage over production and you must buy stocks like TATA STEEL, JSWSTEEL and Hindalco at CMP. Second best sector is Power sector. NTPC and Power grid have agreed and have entered in JV with Sri Lankan Companies respectively to supply 2500 MW with 1800MW by NTPC. So we can expect them to flourish in next 5 years. But i really doubt that in India we have power shortage bt why this State Owned companies are supplying power outside?? Really after reading this situation i Support ANNA Hazare.  Techincally speaking NIFTY has confirmed the 2cd Consecutive close above 4832. RSI and Stochastic have given Bullish crossover but yet in oversold zone but we have seen a bullish piercing pattern on daily chart and tweezer bottom start to this week which is a reversal sign. Hope you all have squared of your shorts on NIFTY and have bought NIFTY with tgt of 5300. Multi Bagger buy with Minimum risk is to buy 5300CE Sept Expiry at CMP of Rs.25  
NIFTY levels for 23rd August:-
R-4935                  S-4832
R-4975                  S-4800
R-5025                  S-4788
R-5056                  S-4750

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