Nifty

#89 Nifty Update

“Mein talli mein talli, mein talli ho gayi”….No its not Malika sherawat but it was NIFTY who was singing today and was not able to control itself until 2pm after which it got support from its best friend Reliance and showed one side clear movement. NIFTY closed at 5153 which was my first resistance up by 28 Points. Today CAG report was discussed in parliament and made public. It accused Reliance of inflating high cost and many things (actually i havent read in detail) but the stock regained 4% from the low as i feel this news were already discounted by investors which had led reliance to make 52 week low of 720.For the first tym in this week NIFTY future has close in premium.. But who is buying??? Its the FII who is buying..>As per the Data FII had sold net $2 Billion in August but till tuesday of this week they had bought back $450 Million.. So guys you must buy few % of your long term portfolio. You might be thinking that i am continuously saying buy-buy since markets were 4800 but other papers are saying that they are expecting 4200 so wait for buy… But guys think practically. When the market was 4800 they were saying its difficult to cross 5000 and 4400 gates open and Blah Blah…but you all missed opportunity…I would just rather buy on each level..You will have good average and you won’t feel that u missed the bus. Now You will say that what base i have to say that market won’t crash from here?? But I am Not saying that it WONT bt it Might Not…why i am getting strong feelings for india is because of companies growth in such condition in each sector… 1) FMCG sector:- Unilver saw 10% growth in first quarter in india while overall was just 5.4% while P&G saw 6% growth in india for first quarter while overall was just 1% so for sure FMCG is a increasing sector 2)Telecom Sector:-Call rates are gonna be hiked and all companies are net adding subscribers so that is a good sign 3) Automobile sector:- Passenger vehicle of selected companies have seen downsales and that too of their personal labour problem while other 2wheelers , tata motors and M&M have seen marginally growth 4) Steel sector:- Essar oil is planning to Zimbabwe’s biggest coal mine which official said could serve zimbabwe’s iron ore demand for 1000 years while SAIL and other companies are bidding for Afghan mines.  5) Cement sector:- Cement sales have surged even in such off season so you may see sales doubling in next quarter and JP Associates is in talk with US Companies to expand their global reach so that is also a good move 6) Pharma Sector:- Lupin and Auropharma have got various nod and have strategic ventures with Italian and russian firms respectively to have marketing in india and their country so that is also a strong fundamental point. 7)Power Sector:- NTPC has joined 50:50 JV with Ceylon Elec board of Sri Lanka…so that is also a major event 8)Education Sector:- Educomp had been in IT raid but yet it received orders from Chhattisgarh govt for IT solutions in govt school…While Banking, Infra and Broking business are in some pressure but thats the matter of time.. But you could see in other sector many important event had occurred during such so called recession which says India is still on growth. On commodity side you mat expect gold to touch 26513 as it has made double top around 28200. Europe Bank didnt make any change in interest rate and kept it 0.5% . Now most awaited Obama’s and Bernake speech will be late in eve. Technically NIFTY seems to be strong over 5095. Now near term resistance is at 5188 and 5209. RSI  and MACD all suggesting a formation of Inverted head and Shoulder. And YEAH AM NOT SAYING YOU WONT SEE FURTHER DOWNFALL BUT YOU MAY START BUYING ON SUCH LEVELS TO NOT MISS ANY BUS!!!!
NIFTY levels for 9th September:-
R-5188                  S-5127
R-5209                  S-5111
R-5230                  S-5095
R-5265                  S-5064

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