Media Report about CAG report hinting Rs 10.6 Lakh Crore scam in Coal Blocks Allocation, Partial Rollback of Railway Fares by new Rail Minister, Rupee falling to 2 Month Lows, Weak German & Chinese Economic Data did not allow markets to sustain at higher levels.
Key Indices Sensex & Nifty declined 0.7% for the week. Smallcap index underperformed the index by falling 1.17% for the week while Mid-Cap index out performed the index by falling only 0.17%.
News report over alleged scam w.r.t coal blocks allocation to the tune of Rs 10.6 Lakh Crore spooked the markets & huge sell-off was witnessed. Times of India reported that CAG of India has drafted a report which suggests that Govt has extended undue benefits to various steel, power & cement companies.
However, later CAG has disowned the report clarifying that the details published by the media report were just observations & do not even constitute its pre-final draft.
But, its important to note that though currently the issue of irregularity in Coal Block Allocation is at a nascent stage of CAG's observation, but if such a report is to be issued in near future by CAG & that too 5 times the magnitude of 2G scam could prove detrimental to the Markets & economy as a whole.
Rupee hitting 2 month low & slipping upto 51.25 levels has put tremendous pressure on the bourses. Also crude has given a fresh breakout and is inching upwards above 120$ per barrel. This can deter RBI from going ahead with any Rate-cut in its April Policy Review Meet.
Index Heavyweight Reliance too supported the bears. Reliance Industries witnessed sharp cuts upto 735 levels following its KG D6 output hitting all time low production of 28 mmscmd.
Partial Rollback of Railway Fare hikes may be welcomed by Aam Aadmi but it has not gone down well with the Market Participants as it is being seen as a major failure on the Government's part to take forward major economic reforms which can reduce economy's mounting fiscal deficit.
It is feared that on a/c of coalition politics, if Government cannot even implement rail fare hike proposed in Railway Budget & has to rollback on a/c of pressure put by coalition partners, how will it bite the bullet when it comes to implementing more important reforms pertaining to Diesel price deregulation & FDI in retail & so on.
Also, All is not well on the Global Front with IMF chief's remarks on Slowing Growth concerns in China & disappointing manufacturing data has raised alarms into Global Markets. Lower than expected German PMI data has added to the pressure.
Nifty PCR OI is at 1.09 levels with heavy additions in 5200-5400 Call Options. Nifty Future premium has also shrinked to 7 points compared to 25-30 points in the week gone by.
Nifty Future is displaying reluctance to cross & sustain above 5400 or even break 5220 as selling pressure is witnessed on all rises & buying support emerging at lower levels resulting in Nifty to oscillate between 5200-5400 range with highest OI built up in 5400 Call Option & 5200 Put Option.
Use any pullback upto 5380-5395 to reduce your Long positions as bouts of selling pressure would be witnessed on all rises. If 5420 is not crossed & sustained, then it may only be a pullback & not a bullback.
Going Forward,
If Nifty Future fails to cross above 5410, will trade in the range 5184-5410.
Strong support lies @ 5185-5195 & selling pressure would intensify upto 5060/4937 only if Nifty Fut breaches & closes below 5184.
Further upside upto 5538/5610 would be witnessed only if critical resistance area of 5395-5410 is crossed & nifty Fut closes above it.
Key events in the coming week would be India WPI & US Q4 GDP which would be announced on 29th March.
Markets would witness high volatility on A/c of F&O expiry on Thursday, 29th March.
Regards,
Team Market View Investments.
Mo : 9987750901.
Visit www.mktviews-nifty50.blogspot.com
Facebook : www.facebook.com/mktviews.
Team Market View Investments.
Mo : 9987750901.
Visit www.mktviews-nifty50.blogspot.com
Facebook : www.facebook.com/mktviews.
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Investing in Stock markets carries high risk and hence Professional should be consulted before taking any investment decision / call. The inputs presented here are for information purpose and are not buy or sell recommendations to any individual or to any groups.
Investing in Stock markets carries high risk and hence Professional should be consulted before taking any investment decision / call. The inputs presented here are for information purpose and are not buy or sell recommendations to any individual or to any groups.
Disclaimer : As equity traders/Advisors We, our relatives and friends may have position in the stocks suggested by us. We are individuals and dont belong to any brokerage house or company. All Recommendations are based on technical and/or fundamental analysis and/or Personal observations. Trading in stock markets involves risk . We give Recommendations, opinions or suggestions with the understanding that readers acting on this information take in to account all risks involved with market. Acting on the basis of views expressed here is the sole responsibility of the reader. No responsibility will be assumed by the authors for the consequences what so ever, resulting out of acting on these recommendations. The information herein, together with all estimates and forecasts, can change with/without notice depending on the Market Conditions.
