#92 Nifty Update

“Dhak-Dhak , Dhak-Dhak”…Nope its not the previous Hero Honda advertisement it was the heart beats of the investor that i could feel during the market hours today.NIFTY opened up on the back of good US markets and then saw a fall of almost 100 points from the days high to end at 4940 almost flat just 5 points down. NIFTY future has also closed at the same point after long time. 

Stock in news since last two days is TATA MOTORS..basically for 2 reasons one being the stock split from FV 10 to FV 2 and other being CEO Forster resignation on Friday on short notice. He was the key guy on the acquisition of JLR. Company official says that his resignation wont affect the JLR operation in india. NALCO (National Aluminum Company) a state-run company, operating in orrisa, is the third largest produce of aluminum had to reduce production of 6% on daily basis due to power supply cut. This is a shame to Indian government.. Dont you think?? If you just recollect before few days NHPC joined hands with Sri-lankan Ceylon Elec board to supply power…Damn, why dont you first fulfill our domestic needs??..Jaago Grahak Jaago!!! It is going to affect aluminum output up to 20000 tonnes. Stock buzz was of PIPAVAVYARD  who yesterday got selected by Mazagon dock (indian govt. co.) to manufacture Indian Navy vessels. This brought stock up by 15% in just two trading session. Jai Ho Gujarat!! Gujarati’s are rocking stock market ;). MCX on another side got the approval of IPO and they are planning offstake 12.5% of their holding. To boost Infra bonds government has decreased the minimum FII limit to $5billion and lock-in period is decreased to 1 year from 3 years. Industry official said lock-in period was not the problem but the problem was 20% tax that was levied by indian government on such investment. Another such issue was that IRDA (Insurance Regulatory and Development Authority) has planned to stop giving sanction to High NAV gurantee plans because they make market to fall further as they do heavy selling when they get small profits to avoid loss. So guys dont get attracted by Plans which gurantee’s u high NAV rather invest urself. Talking about the telecom sector analyst expect that service providers will earn more as they give high devices compulsory with Data plans. But do remember Apple has been sued by CCI as they choose such bundled distribution channel and nt going through retail channels making it a monopoly. Tomorrow we have GDP and Inflation Data so guys keep a watch on it

German car maker Volkswagen’s JV with Suzuki will come to end. Suzuki was accused of using diesel engines of Fiat and they think Volkswagen is trying to advantage of their size over them. So they have offered $2.2billion for the Volkswagen stake. OPEC (Organization of Petroleum Exporting countries) has downgraded world crude demand for the next fiscal. They say world crisis will affect the crude most and demand is to decline drastically from US which is the largest pool of crude customers. They even said Demand-supply gap is about to get filled up fast as Libya’s Oil production will resume to normal by 18months,faster then expected.Yesterday Blast took place in France nuclear plant 2cd of its kind this year after Japan.  US banks are expected to post 45% less profit then expected by analyst due to crisis. So avoid Banking stock if you trade in US. But yesterday we saw sharp recovery in the US markets as the news ws flooded that China is expected to buy Italian bonds which may save Europe crisis temporarily. 

Today NIFTY in the morning gave a good start to cover the gap which i mentioned yesterday at 4990-5040. Now NIFTY is left with one gap around 5209-5330 which must be filled up sooner or later. MACD is still flat on daily chart without a bearish crossover so be cautious. A remarkable point to notice today was that NIFTY made a low at same point which it made yesterday making 4911 a strong support. NIFTY still has that “inverted head and Shoulder” intact.. More time it takes to built up more significant is the breakout of the pattern. So fingers crossed for the bulls. Strategy is yet to be cautious on NIFTY.

NIFTY levels for 14th September:-
R-4985                 S-4911
R-5017                  S-4882
R-5030                  S-4865
R-5082                  S-4812

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