#96 Nifty Update

NIFTY View:-
  • NIFTY was  the out-performer today with a sweeping 108 to close at 5140. We had seen a high buying interest in NIFTY and its stocks as NIFTY crossed 5100 mark. Banking stock and Education stocks were leading the race while Auto stocks were lagging behind. Steel sector had seen a marginal move. I feel steel and Banking sector will be the leading hero in next rally. 
  •  Fortis the Big-B of Pharma Sector:- Fortis healthcare is going to acquire hospitals in singapore and will become one the biggest chain in Asia. Its revenue is likely to touch Rs.4800 crore after acquistion. So you can have this stock in your portfolio.
  • Maruti Stock shrinks: Maruti Suzuki strike is affecting stocks at dealers in South. This is a bad sign for the company and they might lose heavy sales volume during festive season. So better be away from this stock in near future
  • Sun-TVs profits to slide down: Sun TV profits to slide as said by sources as high interest cost to affect the company’s balance sheet. They may post a lower growth thsi quarter so if you are holding it then you must book profits and exit.
  • GTL got approval:- GTL gets approval to re-structure its $1billion debts. there are 16 Banks for the same and they are given 60 days to decide on it. This news might spurt up the stock for short term. So you may buy it for short term investment
  • BGR Energy one order nt enough:- BGR had spurred up by 14% on the bag of 1 order but analyst say that this is not enough for the company’s future. But i am still neutral on the stock and you must be on the bulls for the stock.
  • Reliance may be sued:- Reliance industry may be sued as said by CBI for the in-appropriate production at KG Basin .But this news won’t affect stock price much as it has already been discounted so hold your longs on the stock.
  • Cement season:- Cement demand to spike as post monsoon is the best time for infrastructure development. And rise in cement price will also improve quarterly results for the companies so go for the cement stock for next 2 quarters.
  • Obama raise $3trillion tax bill: Yesterday Obama declared $3 Billion plan to raise taxes for higher income people. Common man appreciated it but opposition says this is the political stunt and this is practically not feasibly. But on investor part of view it will bring short term rally and we must be bullish. Dow Jones has strong resistance at 11700.
NIFTY Technicals:-
  • NIFTY has closed above the strong resistance level of 5072 with higher volumes and the inverted H&S is still intact.You can notice in the graph that NIFTY has closed exactly at the neckline and one more close above 5140 with higher volumes may take NIFTY to 5400 once. MACD and RSI are suggesting bulls for short term rally. NIFTY is expected to fill up the gap at 5300. So i suggest to hold your longs on NIFTY
NIFTY levels for 21st September:-
R-5153                 S-5107
R-5188                  S-5072
R-5209                  S-5040
R-5233                  S-4995

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