Monday, January 21, 2013

Market gaining strength

     It was the finance minister who extended the helping hand when share market was supposed to be in difficulty to find its direction.  At one occasion it was in the form of a sanction to foreign direct investment (FDI) in retail sector which helped the market to stay steady.  Now the Same FM and the central government once again came forward to rescue the market.

     The latest decision of FM and the central government in favour of the market is the postponement of General Anti Avoidance Rule (GAAR). GAAR is referred to the rule intended to prevent the tax evaders on the profit of foreign investments in Indian market.   GAAR, the other day, has been postponed to April 2016 which helped the market to stay steady.   The decision that allows the oil companies to determine the price of diesel time to time also might bring euphoria in the market in spite of the country-wide public protest against the move.  Meanwhile, the dangerous level of inflation rate still causes misgivings in the market.  Though the wholesale price based inflation got down slightly in December, the retail price based inflation is still on the mode of rising up.  Moreover, RBI recently has given the signs of its possible inability to bring down the interest rates since the inflation rate is its highest level.  This precisely means that RBI might once again disappoint us in its credit policy review  which is to be delivered on January 29.  
     But experts observed that even though the credit policy review of January 29 ended up disappointing one,  sooner or later, the interest rates will turn descending mode.  Therefore, the large scale investors are nowadays busy with increasing their investments step by step.  Foreign institutionalized investors (FII) by now invested as much as Rs 12,500 Cr since the new year began.  If this attitude continues, it will favour the market positively.   Reliance industries became the biggest beneficiary after the control over the diesel price has been lifted.   RIL, on Monday, will release the Q3 results of the current fiscal year which will impact the movements of share price indices significantly.
     Technically it is seen that the market is gaining strength.   Last week, the BSE Sensex and the NSE Nifty closed above 20,000 and 6,000 respectively.  Sensex closed at 20,039 last week and its first resistance is 20,400.  If it crosses this level the next resistance will be 21,200.  It was from that level the market turned into the correction mode in January 2008.  The market had reached near this level in November 2010 also and even then the market showed the correcting tendency.  Therefore it is better being cautious at this level next time as well.  If the market shows the sign of correction coming days,  it has strong support at 19,800, 19,600, 19,200 levels.
     NSE index Nifty closed at 6064.4 last week.  It has the resistance at 6150 level.  It has strong support at 5990, 5950 levels.  Selling pressure will take strength only when market moves below 5950 level.


  1. I'm not sure where you are getting your info, but great topic.

    I needs to spend some time learning much more or understanding more.
    Thanks for great info I was looking for this information for my mission.

    Stop by my homepage ChiDAlesna

  2. It's really a great and helpful piece of information. I am happy
    that you shared this helpful info with us. Please
    stay us up to date like this. Thanks for sharing.

    Look into my web blog ... RandalHMcvay

  3. My brother recommended I might like this blog.
    He was totally right. This post actually made my day.

    You can not imagine simply how much time I had spent for
    this info! Thanks!

    Also visit my web site: MaryjaneWLefchik

  4. Howdy! This post could not be written any better!
    Looking through this article reminds me of my previous roommate!
    He continually kept talking about this. I
    will forward this information to him. Pretty sure he will have a good read.
    Many thanks for sharing!

    my web site; RossieOSmulik

  5. Thanks for some other informative web site. The place else could I am getting that type
    of information written in such a perfect approach? I have a
    undertaking that I am just now working on, and I have been on the
    glance out for such info.

    My web-site ElliotPTorrijos

  6. Hey would you mind stating which blog platform you're
    using? I'm planning to start my own blog soon but
    I'm having a hard time deciding between BlogEngine/Wordpress/B2evolution and Drupal.
    The reason I ask is because your design and style seems different then most blogs and I'm looking for something unique.
    P.S My apologies for being off-topic but I had to ask!

    my blog post ... SanjuanitaOLegerski

  7. What i do not realize is in fact how you are now not really much more smartly-favored
    than you might be right now. You are so intelligent. You understand therefore considerably in relation to this matter, made me in my view believe it from a
    lot of numerous angles. Its like women and men aren't involved until it's one
    thing to accomplish with Girl gaga! Your own stuffs great.

    All the time handle it up!

    Feel free to surf to my web page: SantanaOBulter

  8. I am not sure where you are getting your info, but good topic.
    I needs to spend some time learning much more or understanding more.
    Thanks for great info I was looking for this info for my mission.

    My web page BobBEshenbrenner

  9. Appreciating the hard work you put into your blog and detailed
    information you provide. It's great to come across a blog
    every once in a while that isn't the same outdated rehashed material.

    Fantastic read! I've bookmarked your site and I'm including your RSS feeds to my Google account.

    my weblog - OlivaGClance

  10. I pay a quick visit everyday a few blogs and websites to read articles or reviews,
    however this webpage gives feature based articles.

    Feel free to surf to my web blog: TrinidadXBatters

  11. This website was... how do you say it? Relevant!!
    Finally I've found something which helped me. Thank you!

    Here is my web page :: AronTLemmons

  12. With havin so much content and articles do you ever run into any
    problems of plagorism or copyright violation? My blog has
    a lot of exclusive content I've either authored
    myself or outsourced but it looks like a lot of it is
    popping it up all over the internet without my permission. Do you know any solutions to help protect against
    content from being stolen? I'd genuinely appreciate it.

    My webpage ... MyronNDesai

  13. Hello! Do you use Twitter? I'd like to follow you if that would be okay.
    I'm undoubtedly enjoying your blog and look forward to new

    Feel free to surf to my page :: LarraineSBaugess


Google search


Related Posts Plugin for WordPress, Blogger...

Popular Articles