Nifty become confident again

Friends,

As was told to you only yesterday, the Nifty has become confident again, there is very good support at around 5000 level. The next move on the up side may in fact make bears very very defensive and would catapult the Nifty in to new territory. It closed at the decent level of 5050.

The above view is supported by the export performance indicators, the Nov 09 exports have been better by 18%. The improving exports indicate that the world economy is regaining its strength in general and India remains competitive. Indian competitiveness is some thing which would carry the markets ahead, more than any thing else.

Reliance management is not going overboard for the acquisition of Lyondellbassel. This is good for Reliance share price. If the deal comes with reasonable price tag, the Reliance may see good up move. You should be continuously picking Reliance which currently trades below 1050.

You were told to be out of Banking stocks and go for Cement and Steel. If you acted upon the advice, you may have made decent gains. There is yet more room for cement and steel scrips to go up but the correction in banking stocks has made them good for investment, particularly interesting are ICICI Bank and State Bank which are about 823 and 2150.

Hari Om,
Krsna Khandelwal

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