#83 Nifty Update

WHERE’s the PARTY Tonight???? NIFTY boomed like a F1 Mcleran at 171 points to close at 4919. QE 3 was not declared by Bernake on Friday which was positively taken by all the markets over the world and which was one of the driving factors to nifty’s dashing mood today. Anna hazare’s partial victory over parliament was also a reason for NIFTY to have a big smile. This financial year has witnessed high inflation throughout and retail sector is most affected. Indian commerce ministry has witnessed a decline in demand for Indian goods so they are looking forward to tie up more bilateral trade contracts with Latin America countries such as Costa rica and 6 more countries. Retail sector companies such as Pantaloon and Shopper Stops are going through margin pressure because due to Inflation property rentals have gone up and have seen decline in sales as middle class is the most affected with inflation. So short term investors with horizon of 3-5 months avoid retail stocks. But retail traveling agency’s have seen a good growth. Online travel queries have increased by 59% and Mobile Traveling queries by 250% in last one year as reported by Google India. Many online travel agents have also started offline channel sales. Therefore we can see a good growth in traveling segment in next decade because India is growing tremendously with internet user’s number and we will surely see exponential growth in Online travels. One of the U-Turn to 2G case was for UNITECH and RCOM today. CBI clearly gives a clean chit to UNITECH stating that they didn’t found any money trail while RCOM 3 officials are said to have been clear in the case. Now you may see a upside rally in both the stock and i recommend to buy them with 52 week low as a SL. Coming to NIFTY technical , today’s rally gave a strong close above 200 Weekly level which it breached last week. Daily RSI and Stochastic have given a confirmed bullish crossover while MACD is yet to confirm. Now we can surely wait for that unfilled gap at 5230 level. Hope you all holding 5300 CE…And risk take tomorrow can buy 5000CE of October expiry..but keep a Stop loss of 4790 of NIFTY cash
NIFTY levels for 30th August:-
R-4961                  S-4878
R-4983                  S-4825
R-5020                  S-4808
R-5080                  S-4790

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