Markets at 52week and Indian Politics are best on their cheating skills…

Yeah we all know this Heading is actually very different from the usual articles in this News paper. But atleast the readers of this News paper should be made aware that the Indian Economy will soon be counted in the list of the bankrupt economies of the world. Now there seems to be not limit for the manipulation in India. Name any event or any sports or anything, there is no loyalty in any one.

Finally the markets are at their 52 week high. Markets continued its rally. As mentioned in my earlier article that the Nifty if closes above 5400 levels then we could see some great movements upside. FII remained buyers for the week but at the same side DII kept on booking profits for the week.

China’s economy will cool off this quarter. Annual gross domestic product will slow to 9.2% from 10.3% in the second quarter and 11.9% in the first. The property prices have surged to unreasonable prices in some cities and out of the people’s reach. Greece is close to next loan as an austerity measures.

Nifty will face resistance at 5537 levels. In the weekly chart we can see that the Nifty is approaching its upper trendline. Decisive breakout above the same can take the Nifty to 5611-5700 levels. But this ride will surely not be so easy.

On Wednesday Sensex closed at its 2 and ½ year high. Sensex made a high of 18295 but closed over at 18143. Nifty made a high of 5487 before closing at 5431. Nifty and Sensex rallied almost 1.5% in a week. Smallcap and Midcap Index performed much better then the major Index, rallied nearly 2.5%. IT stocks were the best performing stocks in the lot. IT Index surged 2.8%. Wipro, HCLTech surged almost 5%, while TCS & Infosys gained 3% each. Banking Index was up 2.1% with 5.2% gain in Kotak Bank. Some of the midcap and Smallcap stocks fared far better then the other frontline stocks. Essarshipping was up almost 35% in a week. Abhishek Ind up 30%, Gitanjali charts showed good breakout pattern upwards and rallied 17%. Hathway cable & Dishtv were up almost 20% with the new policy. Mercartor & Petronet were up 12% each.

There were some losers also in the Index. Sail lost 3.8%, while Reliance Power and Rcom dropped 3.5% each. In the Midcap Reiagro was down 25% while IFCI & RNRL tanked 5%.

FII remained buyers to the tune of Rs.2000Cr while DII sold nearly Rs.790Cr. Despite of FII buying in the markets, Sensex and Nifty closed in red on the last day of the trading session. Investors booked profits on the last two trading sessions. Inflation for the week still remained high and there are still cautions in the market that the Interest rate hike will surely be there in the near future.

In the weekly chart we can clearly see that the Nifty will surely face some resistance levels on the upside. Nifty will face resistance at 5537 at higher levels. Breakout above the same will take the Nifty to atleast 5600 levels. According to Bollinger band theory nifty point had reached the higher level and then corrected. Now the Bollinger Bands are contracting. Further movement will be decided on that basis only. Either movement can be there in the market.

Nifty support level will be at 5413 - 5399. Resistance at 5537.

This Weeks call

Sell Baja Auto below 2700 levels. SL 2720.

Sell BOI with SL of 438.

Sell BEl with SL of 1767.

Buy HDFC with SL of 3030

Buy Ibreal above 174.5

Sell Relcap with SL of 796