FII’s got all the power’s

Yes, I think the only reason the Indian markets are growing is just because of the Foreign Institutions. 2 weeks back Indian markets corrected nearly 8-9% from 5600-5200 levels when FII’s were Net sellers and the Domestic funds kept on buying in the market. Now when the FII’s have again turned buyers in the market, Indian Equity have bounced back again. Suddenly there is spurt in the volumes, but STIL NOT CHANGE IN THE FUNDAMENTAL OF INDIA. Now the FII’s have turned back Net buyers and see where Nifty is now. We are back to 5600 levels. That proves that the Indian markets are nothing without the foreign markets.

Nifty bounced from the low of 5195 to make a high of 5705 but corrected a bit on the last of the week. Nifty which bounced back from its over sold zone closed at 5627 after facing resistance at the trendline. After four unsuccessful attempt, Nifty finally close above 5600 levels and advanced its rally to make a high above 5700 levels.

Last time I had mentioned about the Head and Shoulder pattern breakout, but was still not convinced about the pull back as there was still no change in the fundamentals of India. Real estate markets are going bad to worse, Bank rates are going up, and Inflation is high but still the Indian markets have rallied.

SBI rallied the most in the banking stocks, it gained almost 6%, Relcap surged 8%, while Hindalco 8.5%. Ril Ind lost nearly 4% on the last day of the trading session. Acc & Bharti Air closed down 2% on week on week basis. Ranbaxy lost 1.5%. In the midcap Jubilant Ind gained 20%, punjlyod was up 16% while the expansion news fired the Bata Ind stock which closed higher by 15%. GTL continued its downtrend, which lost 12%, Sterling bio was another stock which tumbled down 8%. On the other side Midcap Index gained 3.4% and Small cap Index surged 3.8%.

Nifty after a 8 long trading session cooled off a bit after facing resistance at its 61.8% retracement levels. Retracement levels take from the high of 5908 and low of 5195. Nifty rallied from the low of 5195 to make a high of 5705. Nifty faced resistance at its long time trendline. Nifty spot crossed above its 100DMA and 50DMA and surged higher. Nifty close above the trendline will give it push again and nifty can go higher till 5800 levels