Only Ambani’s needed in India……

I wish we had some more Ambani brothers…

Yes that’s true. It seems that the Indian markets needed only Ambanis’. The rumors about the Ambani brothers getting together sparked the Indian markets in the week. Mukesh Ambani and ADAG lead stocks rallied the most. Since last 15 to 20 days, I could read only ambani brothers stories in all most all the news papers. Markets men talking only about the Ambani brothers. Major activity in the Ambani brothers companies were as follows.

30 May: Anil Ambani stays at RIL's Sri Krishna Guest House at Tirupati.
31 May: R-ADAG and US-based CBS Corporation to form an equal stakes joint venture to launch a network of television channels.
1 June: MTN and RCOM to resume merger talks.
Shares of JM Financial Asset Management rise on speculation that RIL is considering buying a majority stake in the firm.
2 June: RIL likely to make big-ticket investments in coal-based power plants.
3 June: RCOM likely to sell a strategic stake to fund 3G spectrum acquisition.
Etisalat, AT&T and MTN said to be interested in RCOM stake.
7 June: RCOM board approves a 26% stake sale. The company will also explore M&A opportunities.
8 June: Anil Ambani drops a Rs10,000-crore defamation case against Mukesh Ambani.
10 June: RIL drawing up plans to enter telecom space.
Reliance Power acquires three coal mines in Indonesia for Rs 7,520 crore. 12 June: RIL enters the broadband space, acquiring 95% in Infotel, a big winner in BWA auctions, for Rs 4,800 crore.
13 June: Ambani brothers and their families vacation together at the Kruger National Park in South Africa.
14 June: RIL board approves the group's entry into pharma, power and financial services.
ADAG might buy Star India's 25% stake in production house Balaji Telefilms.
15 June: RCOM board approves restructuring its tower-owning unit, Reliance Infratel, into an independent company. American Towers, GTL and a consortium of Crown Castle and Blackstone, in talks to acquire the unit.
16 June: Reliance Capital (R-Adag) to buy 18% in Bloomberg UTV.
17 June: RIL considering acquisition of a 26% stake in Fortis hospital chain.
RCOM considering selling a 26% stake in its wholly-owned subsidiary Reliance Globalcom.
Mukesh Ambani might invest in R-ADAG firms, including RCOM.

Indian markets surged almost 3 % in the week. Nifty on Monday closed above its resistance level of 5175-5180 levels. Next day the same was broken and the Nifty closed above the 5200 levels after taking support at 5170 levels. On Wednesday Nifty closed at 5233 levels.

In my last article it was mentioned that the Nifty closed above its 100 & 200DMA. Decisive broke out above the same can take the Nifty to 5250 levels. Close above the same will take the Nifty to its next level of 5325-5375 levels.

Its been seen in the past also that whenever the Nifty approaches the 5200 levels, markets men try to short the market in anticipation that the markets might correct. It had happened several times in the past. But this time the scenario is totally different. Nifty according to me will make new high and might cross the 5300 levels.

Yes I have mentioned in the past also that there are still dark clouds in the Global markets and for the Indian markets Inflation is a major concern, But there is no other bad news for create new pressures on the government and this might lead to increase in the interest rate.

On Friday the benchmark Nifty snapped the 7 day winning streak and closed in negative. Ambani brothers stocks lost the most triggering the sell off in the Indian markets. Nifty some how managed to hit the 5300 mark in the intraday trade but closed below the same at 5262. Sensex closed down 46 points at 17570.

Nifty has bounced back sharply from the over sold zone. And closed above its 200 DMA. Nifty resistance levels are at 5325-5375.

BUY Gillette Ind. Cmp 1678.

BUY BOC. Cmp 288.

Still there is lot of steam there in the company pricing. Both the stocks have surged in the near past. Wait for some correction and then buy……..

The only thing that is going in my minds since last few months is that, What will the Government of India will do with the Rs. 40000 Cr which they have planned to raise by selling the stake in their loss making company. The GOI have planned to rope in some investors to sell their 10% stake in the Hind copper ltd. But did anyone seen the companies balance sheet, the PE at which the company is trading. What ever said and done….. But where will the money go into. ALL the corrupt Netas of the nation????