SHOCKER!!!! During rains when you slip on floor all of a sudden due to wet floor same was with NIFTY, as sentiments are bearish but global markets were positive last night and so we thought NIFTY would be controlled by bull which didnt happen. NIFTY closed at 4889 down by 60 points. US is still recovering on people’s belief that Bernake will publish out some good policy on economist meet on 26th of August and Europe is too choppy as its still fighting its wounds over greece debt crisis. Japan Debt is downgraded to AA3 by Moody as they worry on economy recovery. Later this week RBI is going to announce norms for new private sectors banks to operate in India but they were still cautious and have asked government to change some norms in Banking Act as there are many loopholes and they fear that this companies will use funds in self dealing with their group companies. SREI Infra, Reliagre, Reliance Capital , TATA Capital are few from the list who might get license for the Banking operations. Today COAL india was in news as they have been accused of violation of mining in 21 ores but the official from company claimed on CNBC that production on Mining havent closed annywhere. IF they are proved to be accused then it may be a major setback for Coal India’s future and credit worth as they had overtook Reliance as highest Market Cap in Stock market on 17th August. Coal India wagers have demanded 100% wage hike which might erode companies complete net profit for next quarter. TATA steel has withdrawn themselves form Consortium led by SAIL to bid for 1.8 MT iron ore in Afghanistan but they might rethink on its decision as said by officials. GVK is planning to raise its stake in Banglore and Mumbai international airports which analyst says is a good decision for the company. Techincally speaking market is in a biased modd and could move either way. tomorrow being expiry we might see some short covering at the end of the day. I still recommend to hold NIFTY with SL of 4750.
NIFTY levels for 25th August:-