BEAR MARKET PREVAILS,NIFTY GIVES WAY Policy paralysis seems to be eating away the growth cycle recently picked up due to the sincere efforts on the part of the govt coupled with well timed action by RBI which deemed fit to slash repo and CRR. The depth in the market is deepening with every trading session . Premiums in both NIFTY FUTURE and NIFTY OPTION are fast disappearing with discounts sneaking into it vigorously. The NIFTY sunk below 5600 for the first time since November 23, 2012. That was the first time that the Nifty actually flirted with the 200 day moving average (DMA). Now it’s a big question that “is the NIFTY and midcap index which has outsmarted NIFTY in falling fast, replicating the trading pattern similar to 2008. THE 200 DMA—KEY SUPPORT If one peeps into the recent past, one can get to know that the Nifty has not gone below 200 DMA on a closing basis. In 2008, also the similar trend where midcaps ...
While the Indian stockmarkets were not generous to investors (declined week-on-week), the rain gods gave a handful to Mumbai and as usual, the city choked during the last week! This did have an impact on the daily volumes traded, which was low in the first three days, only to gain momentum in the later half. Despite a weak start, there was selective buying interest in some sectors. But sentiment was dampened following the Prime Minister's decision to keep disinvestments of public sector units on hold (read Neyveli Lignite Corporation). This time, it was not only the 'Left' that was 'as usual' against the move, but also an important ally from Tamil Nadu (DMK). Incidentally, DMK was a strong supporter of disinvestments of PSUs under the erstwhile NDA government. Besides these domestic concerns, global factors such as North Korea testing missiles and renewed worries about interest rates increasing in Japan added to the nervousness. In this backdrop, it was a tug-of-war between the bulls and the bears with bears winning the battle towards the end of the week.
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