Wednesday, September 7, 2011

#88 Nifty Update

That was a whooping 90 points unbeaten by NIFTY!!!! Why unbeaten?? Just because it never went in red today.NIFTY closed at 5124 up 60 points. Around 11am there was a blast neat Delhi High Court!! Sorry for the families who lost they loved ones. But terrorist are also advancing as BMW is a suspected for the blast!! We should unite and fight with terrorism. Banking sector has been in the focus of investor this month because of 2 reasons 1). 16 Sept is the RBI policy 2) Its the most beaten segment in this downfall and valuation are attractive as they are cheaper. If you read newspaper these days you will find only 2 sector in  focus i.e., Banking and Steel. RBI is planning to reduce SLR to help industries buy more credit from the banks to push the growth in economy. While they have also asked banks not to charge on prepayment of loans which are on floating rates. This move will be sigh of relief for middle-class economy. Government official are also worried about fiscal deficit this year to increase with respect to GDP. Last year it was around 5.3% of the GDP while for first quarter this year it has reached 1.8%. Officials says last year 3G bid had reduced deficit to large extent which will be hurt this year while  they say Direct tax refund was the major cause of high deficit in first quarter. Talking about DLF which has seen erosion of 29% of its market cap since Jan, it is expected to erode more further. It has been charged penalty by CCI of Rs.630 crore while more complains have been lodged against the company which might lead to more penalties. All brokerage houses have downgraded DLF with tgt price of 177.On other side M&M is outperforming market and its rival on high rural sales and diversified product porfolio. They have major chunk of revenue from tractors and its expected that sales will rise due to good monsoon. There was a new development in bid for Afghan mines which stated that Indian consortium lead my SAIL has in total bid for 4 mines in afghan. If won this would be biggest bid won by indian company and it will lead to growth of steel industry. For foreign markets both US and Europe thursday is the deciding day. Obama is going to speak about future job plans which is a major concern while EU and ECB are going to announce measure to save them from crisis. So people be cautious on thursday. Just for gadget lovers, Research in Motion (RIM-Blackberry) has been facing tough competition from Anroid and Apple in North America making investor of company rethinking of their Stake. Technically speaking NIFTY has again closed at important level of 5126. RSI and MACD are showing short term rally. But watch for 5205/5210 level because it is major resistance.. Why?? Firstly, it is the 33.33% retrenchment from the low with respective to 2cd top 6178 on downward sloping resistance line..Secondly, Inverted head and shoulder is forming which has a neckline at 5209 with left shoulder at 4945. So guys trade accordingly. You may once book partial profit at 5209 on my NIFTY longs and buy again at lower levels or can re-buy after bull confirmation. 
NIFTY levels for 8th September:-
R-5153                  S-5111
R-5188                  S-5092
R-5209                  S-5064
R-5230                  S-5030

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