What might be Govt. next move ?

The Nifty closed in the positive today. It is now expected to bounce till 5,642 before it heads ower for a target of 5,500 in the short term. The key supports in the immediate run will be around 5,581 and resistance will be at 5,642.The Nifty has broken a channel trend line on the downside by closing below the 40-daily moving average (DMA), which indicates weakness in the short term. The Nifty’s shortterm bias would remain negative until it closes above 5,660 for a target of 5,440. The medium-term outlook has also changed to negative, as the index has started forming lower tops and lower bottoms on the daily chart. It has also formed a bearish i sland with resistance around 5,660.On the daily chart, the index is trading below the 20-DMA and the 40-DMA, ie 5,660 and 5,642 respectively. On the daily chart, the momentum indicator is trading in the negative. On the hourly chart, the Nifty is trading above the 20-hourly moving average (HMA) and the 40-HMA, ie 5,581 and 5,610 respectively, which are crucial intra-day levels. The hourly momentum indicators have turned into positive. 


To meet its disinvestment target of Rs 30,000 crore in the current fiscal,  the government is likely to approve 9.5% stake sale in state-run NTPC, according to reports. The stock was down 3.46 percent. Additionally,  World Bank will also give India a record $70 billion  in remittances in the year 2012, topping the list of developing countries which are expected to receive a total of $406 billion this year.

To get the reform drive going, the government aims to pass bills opening up the insurance and pension sectors to foreign investors in the upcoming winter session of parliament, a minister said on Tuesday.

While the Winter Session of Parliament, beginning tomorrow, will be a key gauge of the way some recently announced economic reforms are to be implemented, worries over FDI in multi-brand retail could derail their implementation.

Our worry is that even a discussion on FDI in multi-brand retail will lead to heated debates and could lead to disruption in parliamentary proceedings. If the debate on FDI in multi brand retail is put to rest soon, we would hope that other reforms will also be passed.

P K Chaudhary
CEO Nifty T3 Terminal