As we see that Nifty is trying to make last ditch effort to trap the bears as index tested support of 5,485 and closed below the crucial resistance of 5,530 and we do not expect the uptrend to last as a crucial resistance at the level of 5600 exists. For the time being we see consolidation in Nifty near levels of 5430-5490-5560-5612. The market is in a state of dilemma as we are seeing consecutive 3 days formation of Doji and this is our last ray of hope as it may signify that bears are losing grip in the market, though overall trend remains bearish.conviction has reduced and there is too much of indecision. The market breadth remained fairly negative, with declining shares outpacing gaining ones by 1646 to 1204 shares on the BSE. Thus if you are a die hard day trader than you can not afford to trade without the list of stock picks tomorrow which are going to get into action mode as stock specific action is the order of the day irrespective of the condition in the market.
RBI Update
The Prime Minister's Economic Advisory Council stated that India's GDP growth will slow down to 8.2% in the current fiscal and inflation rate is expected to remain high at 9% till October. The report further said that global economic and financial situation was unlikely to improve (in the foreseeable future) and this could impact the domestic economy. This situation means that Reserve bank of India will keep on undertaking the relentless effort of taming the inflation at the altar of growth and home loan buyers will be the most affected as loans will become very costly. I hope you all know that if the cost of dwelling is less than 25 Lakh than you can get home loan at 1% lower than prevailing rate from the same bank. Corporation Bank, Indian Overseas Bank and two other lenders raised their base rates with effect from today, after the RBI's larger-than-expected interest rate hike last week.
Global Market Update
(a) The US President, Barack Obama announced a framework debt-limit deal ahead of Tuesday's deadline. This will raise the US borrowing limit and help avoid a default. So finally U.S. lawmakers have struck a deal on raising the nation's debt ceiling which has eased fears of a catastrophic debt default. The compromise plan must be approved by majorities in both houses of Congress before Tuesday's deadline. Markets are not convinced that short-term resolutions to recent debt crisis in the U.S. and Greece present fundamental solutions. Economists do not rule out the possibility of a downgrade of the rating of the U.S., which in itself could inflict a far greater damage on the economy.
On the agreement - its first part will cut about $1 trillion in spending over the next 10 years. Additional $1.5 trillion in deficit reduction would come through a longer term process vide tax and entitlement reform. "The result would be the lowest level of annual domestic spending since Dwight Eisenhower was President," Obama said in his speech assuring that it still allows making job-creating investments in things like education and research. China is very much worried for a default like situation as it is holding a sizeable dollar in its treasury chest.
(b) The US investment bank Morgan Stanley slashed its growth forecast for India for the current fiscal year as well as next citing rapidly deteriorating near term growth outlook for Asia's third biggest economy.
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Support and Resistances for the Day
| Indices | Support | Resistance |
| Nifty | 5450-5404 | 5532-5611 |
| Sensex | 18140 | 18509-18742 |
Jackpot Tip Profit
| Stock | Profit (Rs) |
| Tip | 1310 (Rs 50,000 Trading) |
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Intraday Trading Tips
| Share | Gains (Rs) |
| Tips | 30670 |
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Future and Options Daily Paid Tips
| NSE Nifty 50 Stocks | Made Money (Rs) |
| Tipz | 47750 |
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Strong future shares at National stock exchange
Hexaware, Idea, Petronet, Bharti Artl, Bata India, GSPL, Pantaloon, Chambal Fert, Alstom Project & ABG Ship.
Weak future stocks at NSE
LITL, Jindal SWHL, Educomp, BGR Energy, Orchid Chem, NCC, National Alum, Canara Bank, KS Oils & Ibrealest.
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