"Our markets rallied inspite of negative opening, touching new highs on friday, on the statement made by PM & UPA chairperson Sonia Gandhi that the government will sort out the Indo-US nuke deal irritants with the left parties, and the government will run its full term, and there is no scope for a mid term poll. However, Reliance Industries AGM, where the investors had the high expectations from the management on possible announcement / indication about the Bonus/Stock split were disappointed, thus, it attracted huge selling along with it the other reliance pack also, which were sold off on week end considerations and profit booking. FM statement that he is suprised with the pace of raising of Sensex and some times worried too, also spooked the party, and the indices closed with 2 % losses on friday, though week on week they have posted substantial gains due to the blow-out rally on Tuesday/Wednesday.
Tech sector received selling due to appreciation of rupee, on huge capital flows into equity markets. US markets recovered from the losses of Thursday and posted gains on positive economic data, and also on M&A activity being expected in Technology sector. US futures point to positive as of now, and our markets will open with a gap up and rally on monday, whether they will clear highs made on friday, and rally further to post new highs, depends on the performance of Reliance Industries stock and infrastructure stocks. Volatility will be high during this week as the fight between bulls and bears intensifies, but as of now bulls continue to have upper hand as long as Sept closing of indices Nifty( 5021.35) & Sensex(17291.10) are held. The short term trend becomes negative only if these levels are breached on weekly closing basis.
Support for Sensex shall be 18333 and Nifty 53605 for the day.
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