Stocks
Bulls survive a scare as Nifty endures 5,171

Strong resistance is pegged in the 5,372-5,385 points range and unless and until this is decisively taken out the bears continue to hold a slight edge. One should persist with the strategy of selling in rallies especially close to the above mentioned area

S&P Nifty close: 5295.55    

 
Market Trend
Short Term: Sideways        Medium Term: Sideways        Long Term: Down


The Nifty opened flat and sold off immediately to the bulls on the brink as it hovered around recent low of 5,171 points (in fact it was broken during intra-day trading) but holding above it in close. The fact it survived the F&O (futures and options) settlement day resulted in short covering which took the Nifty to the high of the week before settling 18 points (+0.33%) higher. This has resulted in a “hammer formation” (indicating at least a temporary bottom) but further evidence is awaited.

The sectoral indices which outperformed were BSE Healthcare (+2.46%), BSE Fast Moving Consumer Goods (+2.04%) and BSE Metal (+1.10%) while the gross underperformers were BSE Power (-2.43%), BSE Consumer Durables (-1.03%), BSE PSU (-0.97%) and BSE Capital Goods (-0.83%).  The weekly histogram MACD continued to move down but is still above the median line indicating that the bulls’ hopes are still alive. However the volumes were flat during the recovery.

Here are some key levels to watch out for this week
  • As long as the S&P Nifty stays above 5,246 points (pivot) the bulls would breathe easy even though the intermediate trend is sideways.
  • Support levels in declines are pegged at 5,185 and 5,075 points.
  •  Resistance levels on the upside are pegged at 5,356 and 5,417 points.

Some Observations
1.    The Nifty closed above the pivot of last week and has formed a ‘hammering’, raising hopes of the bulls of the recovery gaining further ground.
2.    Weekly averages still continue to be negatively phased hence a close below these would result in the selling pressure accentuating.
3.    Unless and until the 5,372-5,385 points range is taken out in close the bears will hold the egde and a break of the recent low of 5,171 points (in close) would set the cats amongst the pigeons.

Strategy
Strong resistance is pegged in the 5,372-5,385 points range and unless and until this is decisively taken out the bears continue to hold a slight edge. One should persist with the strategy of selling in rallies especially close to the above mentioned area. We are likely to witness see-saw trading during the course of this week as the bulls and bears fight to take control. The successful testing of the low of 5,171 points has become paramount importance for the bulls to defend this level at all costs to prevent chaos.

(Vidur Pendharkar works as a consultant technical analyst & chief strategist at www.trend4casting.com)

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Public Interest Exclusive
Supreme Court rejects Hiranandani’s petition regarding Powai project

The apex court upholds the Bombay High Court’s decision to stop sale of plots for mass housing project that were merged and sold for Rs7 crore each instead

The Supreme Court no Friday rejected the special leave petition (SLP) filed by Mumbai-based builder Niranjan Hiranandani against the Bombay High Court order that restricted the developer from further construction and sale of flats under the Hiranandani Gardens project at Powai.

Commenting that it is not viable to interfere with the Bombay High Court’s order at this juncture, the apex court asked the developer to withdraw the petition. The next date of hearing in the Bombay High Court is on 12th April.

Mr Hiranandani had signed a tripartite agreement with the Maharashtra government and MMRDA (Maharashtra Metropolitan Region Development Authority) along with the original landowners; by which 240 acres of land in Powai under ‘Pawai (Powai) Area Development Scheme’ was supposed to be used for a mass housing project. These flats were to be of 400 sq ft-800 sq ft in area.

However, Mr Hiranandani built some 70 towers, which house around 4,000 families. The plots were merged to form 4,000 sq ft to 5,000 sq ft units, which were sold at a price as high as Rs7 crore. Around 15%-20% of the land is yet to be developed.

While hearing a PIL filed by Medha Patkar on behalf of Bachao Ghar Banao Andolan of National Alliance of People’s Movements (NAPM), the Bombay High Court had ruled on 22nd February that all construction on site be stopped and no flats to be sold before allotting homes to weaker sections. The court also ordered the developer to build 3,100 affordable homes of the size mentioned in the tripartite agreement and to offer these flats to lower income customers at Rs135 per sq ft.

Mr Hiranandani filed an SLP in the Supreme Court against the decision of the Bombay High Court. However, the apex court upheld the Bombay High Court order and refused to interfere.

Advocate-activist YP Singh, who had earlier argued the case for NAPM in the Bombay High Court, said that the activist organisation will soon be filing a criminal complaint against the accused persons under the provisions of Prevention of Corruption Act, 1988 and Indian Penal Code, 1860. In the PIL, the state government and the MMRDA are also named as respondents.

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Life Exclusive
The Other Country: The real India

Despatches from the Hinterland

After her husband’s death Prabha Devi of Tehri,...

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