==>> Shanghai spoils the party

On Friday, markets closed up green. But today opened on the negative note on back of week Asian markets. Chinese markets were the main culprit to the fall in the Global markets. Shanghai fell down almost 7% in intraday trading. Reports are in the markets that the Chinese markets may still see 5-15% correction. Indian Indices too opened weak. Sensex opened down by 90 points slipped down nearly 330 points in the mid session. But recovered some points in the late hours to close down by 255 points at 15659. Nifty tumbled down to make a intraday low of 4635. Nifty closed at 4662, down by 70 points or 1.48%. Heavy sell off the IT, Power, FMCG and telecom stocks lead the markets tumbled down.

Q1 GDP grew by 6.10% v/s 7.80% YoY.
Farm sector growth at 2.4% versus 3% YoY
Manufacturing growth at 3.4% versus 5.5% YoY
Mining sector growth at 7.9% versus 4.6% YoY
Construction sector growth at 7.1% Vs 8.4% YoY
Industry growth at 5% versus 6% YoY
Services sector growth at 7.8% versus 10.2% YoY

But compared to the QoQ GDP grew by 6.10% v/s 5.80%, and that is good. The Deputy Chairman of the Planning Commission Montek Singh Ahluwalia is still confident that the economy will clock % growth in FY10 despite the drought.

On Friday also Nifty could not cross the upper trendline line. Today also it faced resistance at the same. In the last 3 months we have seen that 4700 levels in Nifty attract selling pressure. Breakout above the recent high with good volumes is necessary for the Bulls to take charge.