Thought for the day
"I've had an
exciting time; I married for love and got a little money along with it."
—Rose Kennedy (American, 1890-1995)
Word for the day
Megillah (n)
A lengthy and tediously complicated situation or matter. or A
lengthy, detailed explanation or account:, e.g., Just give me the facts, not
the whole megillah.
Malice towards none
NGT has banned vehicles older than 15yr from plying in Delhi with
immediate effect.
Congress has moved Ms. Dixit, who was CM of Delhi for 15yrs, to
UP.
First random thought this morning
No urgency is visible amongst the government quarters to handle
the situation in the Kota (Rajasthan ) factories, where a number of young students
committed suicide in recent months. Neither anyone is explaining how this is
different from farmers' suicide? The 3 idiots (Amir Khan, Chetan Bhagat and
Raju Hirani) are also not owning any responsibility for this.
Nifty:
market re-fueling in the air
Technically, Nifty is gaining strength with each passing day.
Nifty has so far absorbed a host of 'below expectation' results; in a
disappointment for analysts and the traders waiting for a correction.
So far Nifty is not showing any sign of a material correction in
the offing. This is despite the short term indicators continuously hovering at
the border of overbought territory.
In my analysis, the reason for Nifty's apparent resilience is the
frequent and sharp sectoral re-balancing. It is akin to a jet fighter's ability
to refuel in the air, without any need to land on ground to refill its fuel tanks.
In few months we have seen, sharp and deep corrections in sectors
like pharma (10-25%), IT (10-15%), PSU banks (5-12%), etc. The popular plays in
the broader markets have also experienced 10-25% fall in prices.
I expect this trend to continue in next few months, as Nifty
inches towards new highs.
I am closely watching a firm closing above 8710 on Nifty. I feel,
this should lead it to new highs in a blink. For Bank Nifty the corresponding
level would be 19450.
This week is eventful with BoJ, FOMC and F&O expiry lined up. This
Monday morning however, Nifty and Bank Nifty are showing any intention to make
a major move this week. The ranges 8330-8630 for Nifty and 18250-19150 for Bank
Nifty may act boundaries.
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