Nifty recovers after hitting 5171, but 5455 and 5516 are crucial resistance levels

With the Railway Budget, the RBI policy review and the Union Budget due this week, volatility is expected to be high. However if the above mentioned resistance levels are not taken out, all these events will turn out to be damn squibs

S&P Nifty close: 5333.55    

Market Trend

Short Term: Sideways       Medium Term: Sideways        Long Term: Down

The Nifty opened flat but continued to fall and touched the S1 level of the week from where it recovered on short covering as well as speculative buying. This saw the Nifty close the week with a marginal loss of 0.48%. The sectoral indices which outperformed were BSE Consumer Durables (+1.77%), BSE Auto (+1.62%) and BSE Bankex (+0.54%) while the gross underperformers were BSE Metal (-3.92%), BSE Oil & Gas (-3.17%), BSE Power (-2.48%) and BSE Capital Goods (-1.09%).   

The weekly histogram MACD continued to move down but is above the median line indicating that a correction is on. A pullback did materialize from lower levels as was expected last week. Volumes were lower as compared to the previous week during the decline which also supports the correction theory as of now.

Here are some key levels to watch out for this week
  • As long as the S&P Nifty stays above 5,295 points (pivot) the bulls hold a slight edge in the near term even though the intermediate trend seems to be turning sideways.
  • Support levels in declines are pegged at 5,209 and 5,085 points.
  • Resistance levels on the upside are pegged at 5,420 and 5,506 points.
Some Observations
1.    The Nifty fell below the 38.20% retracement of the entire fall from 4,588-4,629 points and recovered.
2.    Despite the price being above the weekly averages for six weeks, they still continue to be negatively phased.
3.    The elections results proved to be a damn squib as was envisaged at it will be interesting to see whether the Budget turns out to be the same!

Even though the market recovered from lower levels the 5,455 and 5,516 points are important resistance levels to watch out for. Unless and until these are taken out the bulls are unlikely to make any headway. With the Railway Budget, the Reserve Bank of India (RBI) policy review and the Union Budget due this week, volatility is expected to be high. However if the above mentioned resistance levels are not taken out, all these events will turn out to be damn squibs. Keep a strict stop loss below 5,295 on longs positions if any. The international markets are likely to fizzle out mid week and hence are unlikely to aid the bullish sentiment.

(Vidur Pendharkar works as a consultant technical analyst & chief strategist, at


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Joining hands for new life

Seva Sahayog aims at engaging socially conscious corporate, groups and individuals, with NGOs of matching interests, Alekh Angre reports

India has several grassroots NGOs in remote tribal areas, small towns as well as urban centres. Many earnest ones are born out of their founders’ passion and commitment but face problems like lack of administrative expertise, paucity of funds and inability to access donors. On the other hand, donors have little information on NGOs and are unable to distinguish between genuine NGOs and those set up with dubious objectives.

Seva Sahayog Foundation (SSF), itself an NGO, has been started to bridge this gap between donors/volunteers and NGOs (especially the smaller ones) and to connect the two.

SSF was registered in August 2009 under Section 25 B of the Companies Act by Sanjay Hegde, former partner at PricewaterhouseCoopers, and Devendra Dewasthale, an industrialist, along with their friends. “All of us had worked with NGOs. We knew the problems faced by smaller NGOs, like lack of finance, skilled manpower, or maintaining accounts. Most donors are city-based and NGOs lack the experience to approach them,” says Kishore Moghe, group head of SSF.

Currently based in Mumbai and Pune, SSF is largely operated by volunteers. Till date, about 500 volunteers, from the IT sector, accounting, medicine, engineering, advocacy, etc, are registered. “With volunteers from diverse fields, we marry the NGO’s need and volunteer’s expertise. For instance, a volunteer, who is an accountant, will guide NGOs in accounting and help in other areas of finance,” he says.

SSF focuses on capacity building of NGOs. Before commencing on a project, SSF visits the organisation for necessary inspection like scrutinising legal and registration documents. It also analyses the work that the NGO has done, its accounts, and whether they are working for the poor. NGOs are then associated with SSF and, based on their needs, donors and CSR (corporate social responsibility) cells are approached for funding. So far, around 45 NGOs have benefited from the efforts of SSF.

For corporates, SSF helps in formulating CSR policy, planning & implementation of CSR initiatives, identifying appropriate NGOs and monitors funding. For NGOs, it provides funds and other resources, documentation, strategic planning, drafting proposal, etc.

SSF has been running a school-kit programme since inception. It distributes kits, comprising school bags, notebooks, drawing books, compass boxes, to students from slums and tribal areas. Last year, it distributed around 25,000 school kits. “We found that in many rural and tribal areas, children get textbooks from the government, but they don’t get bags to carry them,” says Mr Moghe.
SSF funds this with sponsorships of Rs250 from individual and corporate donors. Kits are assembled and distributed by SSF’s volunteers to various NGOs.

SSF conducts a two-week NGO internship programme titled ‘Social Leadership Development’ for college students for a nominal fee. Around 15 students are placed with various NGOs and are assigned to specific projects. SSF also organises ‘Seva Darshan Tour’ where people visit various NGOs in and around Mumbai and Pune for a first-hand experience of grassroots situations and needs.
SSF plans to replicate its efforts in Nashik, Nagpur, Aurangabad and Panaji (Goa). SSF funds its operations only through donations. Mr Moghe says that getting volunteers on a continuous basis is a challenge.

You can help SSF as a volunteer, or contribute financially. All donations are eligible for tax-exemption under Section 80-G of Income tax Act. 

Seva Sahayog Foundation

1st Floor, Pitruchhaya,
SH Palkar Marg, Shivaji Park,
Dadar, Mumbai-400 028
Tel: 022-2444 6094
Email: [email protected]


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