Last week the markets were bad, on back of the ongoing cash crunch in the Dubai. But the markets recovered smartly on the next day itself. Markets opened with the bang on the very first day. Nifty recovered and closed above the psychological figure of 5000. Abu Dhabi continued their downward journey, but the impact was not felt in the Global markets. Dubai is not the only place were the people have over spent. There may be many ‘Dubai’s’ lying hidden around the world. China or India could have some of those places too which are over spending and over leveraging. In the last 2-3 years the borrowings from the cash starving companies have grown at a very fast speed. But a slight correction in the Indian markets in early 2008 made a disastrous situation for the companies who have raised money via FCCBs. Over borrowing internal and the Global market can lead to disaster in the Indian markets too in the coming years.

This week major indices recovered. BSE Index gained nearly 2.7%, while NSE outperformed by surging almost 3.3%. Small Cap index was the winner by gaining nearly 6.5% on week to week basis. Index gainers were Tata Motors which surged 12.5% while Unitech and RIL surged in the range of 4-5% and DLF 8.2%. Hero Honda & HUL lost almost 4.5%. Pharma Index gained 6.6%. Ranbaxy contributed the most 13.5% and Cipla by 12.5%. Frontline gainers were Sail 11%, Hindalco 10.5% and Nalco 8.5%. In the telecom stocks Idea gained the most 12%, Rcom 7.5% & Bharti 9.2%. In the Aviation stocks Jet continued its flying streak by gaining 27% in a week, Spice Jet gained 25%. Other Midcap stocks gainers were Rama Newsprint 62%, Tata Elxsi 31%, Nelco 27%, Sasken 24% & Hexaware 19%.

Takeover war of Great Offshore, between Bharti Shipyard & ABG Shipyard is finally come to an end. ABG Shipyard left the war in between just a day before the day of the open offer. ABG Shipyard sold its holding in Great offshore and made handsome profits of Rs 52cr in few days. ABG gained 13% in a week, while Bharti Shipyard gained 43%. But Great offshore lost 3.5% on week to week basis.

Last week on Friday, Markets recovered smartly. Nifty bounced back after making a low below 4800 levels on back of the ongoing issues in Dubai. Nifty took support at the 20DMA. But the markets bounced back sharply on the very next day. Nifty opened with a gap and closed above the 100DMA. The rally continued on the next day too. But in the last 3 days Nifty is finding it hard to close above the recent high of 5185 levels. Nifty have made a Doji pattern in the last 2 days. As mentioned in the last week too that Nifty will find resistance at the 5185 levels. If we check the Bollinger band pattern, we may see some wild movements in the near future. Bullish Breakout pattern will be above 5185 levels only. Nifty will find support at 5036-5015.

Short Nifty below 5110 tgt 5040-5015.

Short Tata Steel below 570

Buy Rcom above 181.50 SL 176.

In small Cap. Buy Aksh optifiber cmp 21.70.