User:Niveza11

Last week commenced with a gap-up opening for the Indian stock markets. However, the equity market could not hold the grip and thus depicted some intraday negativity. Realty sector was the best performer followed by the Banking and Metal sectors. None of the NSE sectors performed badly. The second day opened-higher and thereby traded with a negative bias for the entire session. Realty and Infra sectors were the worst, followed by Metal and Auto sectors. The third day went positively flat, where all the sectors gave average performance with Realty sector again lifting its head up. All the NSE stocks except Bhartiartl, ONGC and ICICI Bank performed well. Thursday opened and closed on a positive note where all NSE sectors competed to beat Nifty. The closing day went quite volatile with falling trade volumes. Only Media sector performed well and amongst Metals, Tatasteel and SAIL played exceptionally well against the Nifty. Overall speaking, the stock market portrayed high volatility where only intraday traders could catch hold of……

The country is now heading towards the Elections and the Budget, thereafter. And thus all eyes on the Government to bring about Fiscal consolidation in the country. Rising Inflation, a weak fiscal position, poor GDP, negative sentiments towards rupee valuation, rising capital outflow and the weak global scenario are the matters of concern that can lead to unstable sovereign rating for the country by S&P. Moreover, the inclination of Indian investors towards the Mauritius companies is another matter of concern, and for this the Government is striving to introduce capital gain tax to such buying. However, out of all this our Finance Minister still assures 6.9% GDP growth!

Globally speaking, the US economy is recovering at a faster pace than the EU and thus the stronger Dollar might not be beneficial for the Gold markets. Demand for Gold rose to some extent on Monday due to fallen prices last-to-last weekend, but the overall physical buying from India is still weak due to rising prices of Bullion specifically the Gold. However, the Indian investors are awaiting the fall in Gold prices atleast below Rs.28000/- for fresh buying. This has lead to rise in the Gold loan which is again the great matter of concern for RBI. The Indian rupee took a breather on Monday after rising consecutively for last four days due to the increasing oil imports and the flat frontline company results. The rupee again weakened from 48.6/$ to 49.05/$ on Monday. To curb the situation, the Iranians have agreed for crude oil payment in installments from India. Moreover, the foreign attraction towards Indian equities also rose after Monday resulting in the net inflows of 6.9 billion rupees. This inflow has helped BSE Sensex to achieve its best gain position since 1994.

What Next……

The Nifty has recorded a five weeks consecutive rally till the last week. As a result of this the Nifty experienced high volatility last week. This was due to simultaneous action of accumulation i.e. the fresh buying by few and distribution by some investors. Now the Nifty has given a Doji pattern on the weekly charts. The Nifty has also given stochastic negative crossover that too in the over-bought zone. Moreover, Nifty could not close above our crucial resistance at 5400 levels and thus has not yet confirmed the end of downtrend in the long-run. As a result, the Nifty might give a correction of up to 5095 in the first place and 5000 thereafter. However, on the daily charts the prices have just moved sideways and not given any negative signals as yet. Hence, this might act as a breather or the flag pattern for another upward momentum, provided it does not fall below the short-term low at 5325 levels. If the rally continues, we have our next target at 5600 levels.