LandT has support at 1330/-

After the budget the undertone from the government is ‘equity markets fairly valued’ and no need to give any soap to lift the sentiment. Government strongly believes that markets are at overbought condition hence no need to give any market friendly decisions at this point of time.

So, for the near term we can not expect any positive decisions from the government till markets fundamentally attractive in valuations.

Markets loosed the crucial support 4180 with good volumes means this level is likely to act as key resistance in the near term.

The medium term trend now is bearish (we are in a strong bull market which is likely to emerge in the upcoming years) and the markets have supports at 3550-3600 which is very hard to hear. If nifty, unable to close above 4180 with good volumes in the upcoming days then there is every possibility to touch the above said levels.



FIIs were sold more than 3000cr in the last three trading sessions where MF houses bought more than 2000cr. This change of hands took place for sure in the near term. MF houses still sitting with huge cash levels is the one key positive issue at this point of time.

Larsen (L&T)is very weak on a chart which is a very big heavy weight in nifty. LnT has a strong support at 1330/- if it breaks then the real panic will come on nifty. Reliance too looks very weak on charts but both the stocks are now at oversold conditions hence some consolidation or pull back can be expected in the upcoming days.

Before going below 4000 some pull back can be expected but the immediate trigger is infosys results. So, markets are not having the time for such pull back. If Infy results are bad then the real panic will emerge, in some stocks yesterday huge short positions buildup but from FII side there is no such huge shorting which is little comforting right now.


With thanks
Be and make
(Disc: Having positions in LnT)