Tuesday, August 6, 2013

Stock market Updates - Nifty updates - Nifty breaches 5600 as Rupee hits an all time Low.

Market updates : Twice in this year we have correctly called the Lows and Highs of Market.In jan 2013 we posted that Nifty will top out around 6180 levels & later we recommended that 5525 would be bottom.Fast forward to July when Nifty was above 6000,we posted that the Rally will not be sustained & Nifty upmove is merely an eyewash because of micro index management by Buying in FMGC,IT & Reliance.So we had a false breakout above 5982 but we gave warning and alerted that this Rally will fall flat,On 15th of July & 30th of July we posted that Nifty has formed Bearish H&S pattern and neckline of H&S @ 5480/5525 will be key Weekly closing level.We gave alerts on 15th July that nifty will not sustain 6000 & market will witness savage fall,Nifty has completed first leg of fall.Rupee at Record low,RBI may resort back to hike key rates.Govt should own up this economic mess.This is not a global issue.There has been no clear cut policy by Govt on various reforms be it in sector of retail or in power or be it Gas pricing.Govt's Food security bill is now seen as more of an Election gimmick to cover up all the mess created by various factions in Govt.India may invite downgrade if CAD & rupee deteriorates further.India's sovereign rating at high risk.Do we have a finance minister? or should we understand that UPA chairperson runs the finance dept?Why Food security bill just prior to election?Its time both Hon PM & FM assert their authority over the section of rival camp in govt that has got not one iota of long term economic implications of populist dole out.Already we are at risk of sovereign downgrade due to high CAD/Fiscal deficit.Reforms that were announced in past one year have failed to enthuse Investors because of flip-flops.A section in Govt is not allowing freehand to Hon PM and FM.Populist measures like food security should be taken when country is doing well not amidst economic crisis.It seems the current polity in the country has taken people's vote for granted.Dole out fake promises & buy out their votes.On all economic parameters, India is pushed back to 2004-2005,any further populist measures & weakening of rupee will peg India back in 90's.The first and foremost task of Hon PM/FM should be : take control of the country.Stop the Food security bill,go for an economic repair,an economic overhaul & sacrifice the politics of election against National interest.Its time both Govt and opposition rise above Election politics & for a change think about country and her People.There will be a better time in future to introduce food security bill,for now Govt & RBI gov primary focus should be economy.Though our bearish call has worked out but as an individuals we all are at pains because our politicians have failed us.Failed to take authority & lead India among other nations of world.A Nation of Billion People with infinite zeal,favorable demographic dividend & great entrepreneurial spirit can now only hope.Hope that Sanity prevails among various politicians & particularly a section within the Govt that wants populist measures v/s reforms.Rupee knocking at an all time low,and Global hedge fund sharks are waiting to take an advantage of this vulnerability.RBI gov & GOI must act & act swiftly.Nifty support levels 5525/5585.Nifty resistance levels 5682/5744.For daily nifty trading levels with Ace Trading Table check out www.acestocktips.com

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