NIFTY CLOSE OUT AT AN ALL TIME HIGH. 7748 VANQUISHED. NOW 7838 – 7920 LOOM AHEAD
Nifty showed off its histrionics on Friday by doing a bungee jump down to 7661.30 and rising like the phoenix to record an all-time high of 7758 and closing out the day and the week at 7551.60. The close above the nemesis of 7748 is very heartening. This was Nifty’s way of celebrating USA’s Independence day. The week saw a low of 7531.60 and a high of 7758. A swing of a good 226.40 points that shook off the weak bulls in the slide on Friday. The confidence in the indices while at their all-time high mean that either the FIIs know how the Budget curry tastes or else they feel India is the best buyable story globally in the EM zone. Is India building it brick by brick over BRIC syndrome?
The upside now has a limit of maximum 6.75% from current levels.
The markets are betting too much on the future and to that extent the dice is lope sided. Between the low of 5318 and the high of 7758 nothing has changed factually other than perception and the creation of “Mount Hope”. The Government needs to be given a couple of years to turn things around but since the expectations are an eruption of 10 years of dismal governance at the bottom of the abyss, the patience is film-thin. If the Government succumbs to pressure and announces numbers which are populist in nature and not realistic, the markets will react very bullishly but in the long run this will only precipitate issues. According to research done by us, the Fiscal Deficit should be ~4.30 for 2015. Consensus expects 4.50 and the markets are rooting for ~ 4.09 and less. Jetley sure has a job on hands. Chidambaram must be smirking at this hullabaloo over this juggling of figures.
The markets are betting too much on the future and to that extent the dice is lope sided. Between the low of 5318 and the high of 7758 nothing has changed factually other than perception and the creation of “Mount Hope”. The Government needs to be given a couple of years to turn things around but since the expectations are an eruption of 10 years of dismal governance at the bottom of the abyss, the patience is film-thin. If the Government succumbs to pressure and announces numbers which are populist in nature and not realistic, the markets will react very bullishly but in the long run this will only precipitate issues. According to research done by us, the Fiscal Deficit should be ~4.30 for 2015. Consensus expects 4.50 and the markets are rooting for ~ 4.09 and less. Jetley sure has a job on hands. Chidambaram must be smirking at this hullabaloo over this juggling of figures.
The upside gap of Tuesday’s close has been partially compromised upon, but the gap still remains. As long as that stays, the hunt is on.
Now going forward, Nifty has weekly range of 7620-7880 and the test of strength comes at 7675. As we have been mentioning “Nifty is likely to maintain its momentum which can take it to 7838-7877-7920 on or before the 13th July. However, If the rally is extended up to 21st July then 8065-8283 are possible.
Going forward the band of 7748-7712-7700-7683.15-7651-7625-7612-7570-7551-7507-7482-7464-7442-7394 is a good cluster of supports”.
Do keep trading. Staying on the sidelines out of fear causes more loss of profit and opportunity than the erosion of Capital caused by market corrections.
Have a wonderful trading week ahead.
Do keep trading. Staying on the sidelines out of fear causes more loss of profit and opportunity than the erosion of Capital caused by market corrections.
Have a wonderful trading week ahead.
No comments:
Post a Comment