India leads the world.

India leads the world…..

Nifty is the highest earning index in the world today with an 11.14% gains taking over Nasdaq after several weeks of close competition. Change in the political scenario has enabled to bring this wonderful leadership power. Coinciding the strength comes many supports that a market needs to continue its rally. Nifty had come into the present bull phase at 5010, though opened up well, did not have a gung ho rally, went into a tight consolidation in the second part of June and has pulled up its strings to close the month with a 58% increase in daily volume adding to more strength to its indicators. This means party days for traders in the coming week. Joy brings more joy, happiness breeds happiness all around, the markets are now really, really happy.

The next resistance for Nifty is at 5350 levels, there are better chances that these levels will pose a challenge. 5150 will hold support for the market at the moment, until there is a good bearish divergence to break this support; market is likely to continue in the rally mood.

Sectors

Metals took lead this week after a long term subdued performance, but most of the stocks in this sector have gone sideways, hence not giving an opportunity for a long trade in them. Many of them have broken their resistance; if the trend gets stronger there are chances for some value trades in these stocks. Along with Metals, Financial sector has joined the bullish bandwagon, if banks join the rally, there is bound to be good momentum as there is financial support for the industries to perform. The other big sector was infrastructure, which had been leading for quite some weeks now.

Currencies.

While political situations pulled up the markets in the equities, it was correction time for the currencies. It was written in our precious post that there is a chance of correction the USDINR as there is a good bearish divergence visible on the daily charts. How events converged to bring this to a reality is beauty that we have to admire. Below 57.01 it was a sell on the daily, but the weekly charts are pretty attracting long trades. Long trades on the USDINR can be entered as a add or a new position after the market settles and gives an uptick confirming that it is in sync with the weekly charts. As people kept watching their positions raking in huge gains and have got used to it. As more and more fear got built up in the mind of participants, the market attracted and made their fear a reality. This is the law of the universe, and it works every time. You may forget to breath, but this doesn’t stop doing its duty.

What are the Big Boys doing?

The last 2 days of the trading week saw hectic activity by the big guys in the market. Huge buying and selling have come through in the markets. As it has been earlier FII’s are the smart guys, they have invested above 2186.35 Crores this week while the domestic institutions have a small share of 177.72 Crores. Some interesting facts here would be that the FII’s bought about 3046 Crores worth of stocks on Friday; our domestic players were net sellers to the tune of 250 Crores. Are our fund managers poorly informed or are the FII’s taking a mad bet on India. The money involved speaks them, 3000 plus Crores is big money and it will have reason for being in. As it happens we can see the markets to surge ahead at least for some days and it is anyone’s guess as to who will rake the moolah. FII’s are surely smarter than our domestic counterparts. Our people have lots to learn.

“All things are difficult before they are easy.” – Thomas Fuller.