==>> Disinvestment plans boost the markets

Governments disinvestment plans in the profit making companies, may have definitely given Indian markets a push. On Friday Finance minister announced the sell of stake in NMDC, which would raise over Rs 10,000 Cr. On Friday, some more announcements sailed in the markets to offload stake in MMTC, Hindustan Copper, and Engineers India & NTPC. The government will sell 5-10% stake in each company. The government had indicated that there will many more disinvestment plans in the near future. There was another surprise in the markets that the proposal for increase in the FDI limit in the Insurance will also be put on to the table for consideration. These were some of the expectation that did not come true in the recent budget. So the disinvestment news came as a surprise that gave the markets a boost.
The markets gained the most since May. Indices gained nearly 9% in the week. Sensex after making a low of 13219.99 on Monday. On Friday it had made a high of 14798.61. Sensex closed near its week high at 14744.92. Nifty closed at 4387.30, after making a weekly low & high of 3918.75 & 4390 respectively. In my last article, I had mentioned that the Nifty might fall down to 3900-3820 levels, But some how, Nifty found good support at 3900 levels and bounced back sharply. On Monday, in the daily chart of Nifty, an “Inverted hammer pattern” was made, that halted the downward movement. I had mentioned the same in my blog (www.techicalsvishaldangaich.blogspot.com) also that the fall will be temporarily halted. Markets bounced back sharply from there. Nifty faced resistance at 4080 levels, but the same was broken on Tuesday itself. Then there was no stopping for the Indian markets. On Friday closed above its 50% retracement levels.
The RSI is trending upwards. MACD is too giving a buy signal. Nifty closed above the 50 Retracement levels and above the trendline marked with no. 1 & 2. 50 DMA have also crossed the 20 DMA from below. Nifty will face resistance at 4391-4429- 4479. Nifty will find good support at 4140 levels.
I would advice the profit booking has to be done. Markets have run up too fast in a short period of time.
Last time I had given call on
RIL Ind to sell with tgt of 1749-1706, it made a low of 1717.
ICICI with tgt of 603-591, below 620, made a low of 606.
SBI with tgt of 1518-1507. made a low of 1510

FII’s & DII’s both remained Net buyers in the markets as per the official site. FII’s bought stocks worth nearly Rs 2000cr. DII’s remained Net buyers for Rs. 600Cr. Volumes in the markets were pretty good as compared to the week later.