Nifty in the last week, twice tried to touch the 4950 resistane level, but was not successful. and closed below the Long term trend line. In the weekly chart, Nifty tried to close above the 23.6% retracement level from 6357-4450, due to lack of buyers. AS mentioned the Nifty major resistance level is at 4950. Till the time the close is not above the same, Market will remain volatile, inspite of strong global markets.The BSE closed the day with a loss of 489.43 points, or -3.09 % at 15343.12 points.It opened with an upward gap of 63.54 points at 15896.09, touched an intraday high of 15896.09 & low of 15303.04. The market breadth was extremely negative on BSE: 837 scrips had advanced, 1792 declined, while 66 remain unchanged.
Inflation wass at 7% as compared to 6.68% in the previous week. Its for the first time since Dec 2004 the Inflation is at 7%. The interest rates are currently at 7.75%, which was not tampered with when the Credit Policy was announced last on 29th January 2008. The next is scheduled for 29th April where a rate hike is a certainty.
Wholesale prices rose 7.0 percent in the week ended March 22 from a year earlier, faster than the previous week's 6.68 percent. Vegetable prices are up 4.9%. The current hike in inflation is being caused primarily by higher global commodity prices in agriculture, fuel and metals feeding to domestic inflation. It is not just an Indian situation; currently the whole world is facing the same problem of soaring prices.
It was generally expected that if the inflation had not breached or touched the mark of 7%, the markets would have improved but now that reality has hit, the markets have not taken to this news too well.
Nifty major resistance level is at 4950-5000. Support is at 4600-4450. Nifty should close above 4800 for futher rally.
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