The bottoms are intact for now despite of the global negative news. The strength of Nifty is now better than a week ago and the whole scenario is changed the technicals for now as good bottom support is at 5400 and the 5500 is a good support where bulls can take advantage of buying again on average cost. The strength gained can be even extended upto 5440 level. So the Bears have to wait for a longer period than anticipated for yearly low cuts of Nifty and its major supporting stocks.
The Bears can say thanks to the rising crude prices, Libya crisis and the Fukushima nuclear crisis. As a matter of fact now the Japan nuclear crisis is more of an environmental concern than of economic concern. The economic impact of the Tsunami can be seen after 15th April, so that the testing time to japans ability to face and come out of this grave crisis is tested against the burgeoning power crisis and the exhausted inventory of the industry. The devastation effect was on the infrastructure especially power crisis. This is seen as immediate impact on the Japan’s automobile industry and their ancillary.
In India the growth indicators are now favouring the Bulls but the future is looking bleak as the inflation is stubborn to yield below 8% and the Govt spending likely to be eased. The political situation is becoming fluid and the populist support to Congress is decreasing due to scams and the gratification charges. The Central govt is not strong to make any big policy changes that can add value to markets other than the GST, banking amendment bill. The serious concern is now on the survival of the Manmohan Singh ability as PM to lead a Govt. with little damage to populist measures initiated and the corruption charges being faced.
