Tuesday, August 16, 2011

#73 Nifty Update

Market salutes 65th Independence day with a positive opening at 5125 but then gradually decrease on domestic concerns. NIFTY closed at 5035 down 37 points. Indian monthly inflation was declared and it was down to 9.22% as per the expectation. Indian inflation is easing out which is a good sign as RBI might end it rate hiking cycle. Experts says that better monsoon will ease food prices and low oil price will ease petroleum prices which are the major constituents of inflation index. State run ONGC is planning to come out with FPO of 412 million shares and they are expected to file RHP early next month. They would like to raise around 12000crores from this disinvestment which is around 5% of government holdings. On the other hand crisil came out  with interesting survey of employment which states that india will need 25.5million more jobs by 2015 to grow with the same pace. Net addition to Employment for the period of 2005-2010 was just 2.2 million because self-employment lost 25.5 million while 27.7 million jobs were added. All job seekers and on going jobbers should be happy high to get better job opportunities in coming years. All the telecom companies are gonna hike GSM call rates which will be gud for revenues and will improve margins of telecom sector but i really doubt will they able to cover their auction cost of 3G license?? US and Europe markets are volatile and indecisive of which way to move on which is making Emerging markets a btter option to invest today. On Political front a new case emerged today...ANNA HAZARE was arrested as he was going to move on fast today. I Dont think Anna Hazare could bring back black money. Do you think all the corporates and government employees will allow him to do so?? All big names are involved and they themselves make laws so i think Anna Hazare wont ever get a upper edge.  Most of the companies are at life time low or 52 week low in oversold territory but i wouldnt advice yet to take long term postions. Intraday traders can trae in scripts like Jublfood and VIPIND for trading where u can earn volatility on both side. They are safe stocks in such conditions. Techincally speaking market is in oversold condition but its getting more and more into a dug. Gap on upper side is expected to remain unfilled until near term. Markets are expected to touch 4800 levels before that. Strategy will remain wait and Watch on NIFTY.

NIFTY levels for 17th August:-
R-5086                  S-4990
R-5125                  S-4951
R-5177                  S-4900
R-5232                  S-4788

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