Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Will The Nifty Turn Bullish For Us?

By Chetan PanchamiaStock MarketsJul 14, 2014 02:48AM ET
www.investing.com/analysis/will-the-nifty-turn-bullish-for-us-219261
Will The Nifty Turn Bullish For Us?
By Chetan Panchamia   |  Jul 14, 2014 02:48AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Even though the Sensex and Nifty have been dipping steadily, and have even scaled record lows last week, analysts feel that the markets are bullish from a long term perspective. Thanks to the finance minister’s reforms, the investment climate of the Indian economy is expected to show rapid growth.

Last week Nifty had given a bearish reversal pattern, closing at around 4 week lows of 7464. The breath of Nifty is poor with Nifty breaking the 1 month low and closing below it. If Nifty breaks out below 7464, target for the weekly is 7240. However, if Nifty goes above 7562, then the markets are deemed safe. This is a crucial time for the stock markets. Whichever way the trend goes, will define a tectonic shift in market activity. Share market bigwigs feel that taking into account the reforms mentioned by Mr Arun Jaitley, the markets are bound to soar at a later point of time.

The Union Budget was hailed as positive and well-balanced by some while others seemed disappointed by its lack of clarity. People had expected more big bang announcements from the new government and market activity clearly indicated how the Finance Minister has fallen short of expectations. Analysts felt that the market players were dejected about the budget not addressing the rationalization of subsidies issue.

However, many corporate honchos and technical experts felt that the Finance minister did a good job considering the limited time frame in which the NDA government was acting. Even though the budget lacked any Big Bang announcements or paradigm shifts in strategy, the budget was beyond doubt well-intentioned, well directed and balanced. The NDA government took a pragmatic approach to issues like fiscal consolidation, job creation, inflation control and providing impetus to the growth of infrastructure, real estate, power and social sectors.

The main focus of the government is on strengthening the shaky foundation of the country’s economy, not just making sensational and drastic policy changes. The idea is to create long term financial stability and provide a business friendly environment in India. For example, increasing customs duty for flat-rolled steel can be favorable for domestic companies. Tax breaks for retail investment, plan for implementation of GST, plan to make 100 ‘smart cities’ and the formation of the REIT (Real Estate Investment Trust) were just some of the measures that can cure the Indian economy of the malaise that has afflicted it from the time of the UPA government.

Views abound on why the market responded so unfavorably. Analysts feel that one reason that the budget failed to make its mark is because it was more focused on expenditure. The budget failed on 2 counts- the implementation of reforms and the absence of new policy reforms other than the ones already mentioned by the government earlier. Many felt that nothing really remarkable has been ear-marked in this budget. It has not met the expectations of the public who were hoping for some radical strategies.

Even though the Sensex and Nifty have been dipping steadily and even scaled record lows the previous week, analysts continue to feel positive about the ultimate outcome of the NDA government’s maiden budget. The stock markets are bullish from a long term perspective. Thanks to the finance minister’s reforms, the corporate ambience of the Indian economy is expected to show rapid growth. The reforms ensure that the FIIs and DIIs will be keen to park considerable sums of money in India.

Will The Nifty Turn Bullish For Us?
 

Related Articles

Will The Nifty Turn Bullish For Us?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
Mahesh Ghoghari
Mahesh Ghoghari Aug 05, 2020 10:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Rahul Patel
Rahul Patel May 20, 2020 9:48PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
yes Mr Chetan, I look that the Nifty may turn 9050-9090 and I think has strong way for 10000 level.
susanta sethi
susanta sethi Mar 17, 2020 12:08PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
please wait , there is no way for bullish nifty. crucial support is 7000 so don't buy ... please wait there's little bit of correction further bears will be strong so don't buy buy .......
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email