Double scoop Icing!!!! NIFTY gave a consecutive mega close of 81 points up to 5001. Initially market opened gap up to 4990 and then we saw some pressure ahead of GDP numbers. GDP number came at 7.7% vs 9.3% same quarter a year before but it was just above expectation of 7.6% by CNBC. Manufacturing and Mining were the beating sector while agriculture and Service Industry backed them a little. People took GDP numbers positively and expect them to be better in next quarter with better economy condition over the world. Yesterday RBI announced guidelines for new private sector banks. Many points in the draft was that only NBFC and Private sector Institute can get license, Should not have more than 10% exposure to real estate and broking, minimum capital of rs500 crore and Foreign stake restricted to 49%. Still these norms are open for suggestion. RBI also tightened the existing norms of NBFC's. It also advice state run banks to restructure loans of MSME which will be a hole in profit for such banks as loan holders are beneficiary. Maruti is again in news for same reason of strike. Workers have gone on strike as company as them to sign discipline bond. This will hamper the production of newly launched maruti swift production. India is going to sit next with EU at Brussels to modify foreign trade treat. EU is the biggest partner for trade but still we have failed to come to a decision since last 4 meets. Hope its solved this time or else we need Anna Hazare again ;). Food Subsidy is to raise to 1 trillion rupees..Ghosh!! Government is taking this step just to avoid bad stock...why dont they open exports limits rather than free distribution unnecessarily??? Coming to Europe, 2 banks of Greece have merged which is a crucial step to fight against crisis. Hope this wil bring some stability in the economy. Another Europe country, germany says that they are short of engineers as stated by Porsche and BMW. they are planning to hire in all around 70000 engineers. So all my engineer friends learn german and prepare for germany. On commodity side gold has witnessed a profit booking and people are investing in risk assets like oil on expectations of world recovery. Technically speaking market gave a blasting close of mental level of 5000. It closed above 7 and 14 EMA. MACD, Stochastic and RSI have confirmed Bullish crossover. NIFTY took support around 4935 (4927) as i stated and i wish you all got 5000 call, if not get it on friday on dips as Market is closed for 2 days.
NIFTY levels for 2cd September:-