Sunday, March 27, 2011

Warren Buffett's India visit stimulates stock market

International investment icon Mr.Warren Buffett's presence in India has stimulated Indian stock market and Nifty surged around 300 points breaking the range bound move, during the days he is in India. The fact that current month F&O series closes on 31st March, 2011 and FIIs and mutual funds generally try to boost their NAV at the end of financial year may also have contributed for the surge in Nifty.

On Friday(25-3-11)Nifty opened at 5589 with a gain of 67 points, moved in the range 5563 - 5583 till 1:00 p.m., surged to 5667 and closed at 5654 with a gain of 132 points, at the centre of M2. Though Nifty moving to centre of M2(5642) once it enters M2(above 5464)is quite logical, it was not expected since Nifty never breached 5610 level after 28th January, 2011. Now Nifty can move to top of M2(5797)during this week or reverse after moving above 5700. Nifty futures range was 5571 - 5693, having a difference of 122 points. The Agni level for tomorrow is at 5617 and exit longs when Nifty moves below Agni level.

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