Nifty Recap For The Day!!!

We opened in line with the global weakness. cRUDE shocks again I say!!! Nevertheless we made a smart recovery in the mid day trades and managed to close at the upper end of the intra day range. A very nice long trade was given by the nifty with the MA providing good support on the pullbacks but I doubt if many people took it, because at times volatility was scary. On the dailies we seem to be trapped between the two important moving averages the 200 and the 50 (reminds me of ajit joke.. like being put in a liquid oxygen tank…liquid(200 DMA) wont let u live and oxygen(50 DMA) wont let you die :)…poor joke???I know it is! ). Let’s see which MA we break first. Also point to be noted is that ADX is really quiet, is it a lull before a storm? We are in a precarious situation with concerns of global inflation and our own elections it’s a double whammy for our markets.

Speaking of Inflation I would like to share something from Peter Navarros book;

The problem, however, with tracking inflationary pressures is that there are

two main kinds—“demand-pull” and “cost-push”—that can have very different

effects on the market.

Demand-pull inflation comes with economic booms and “too much money chasing

too few goods.” It is very bullish. It is also readily curable using contractionary

fiscal or monetary policies.

Not so with cost-push inflation, which is the result of “supply shocks” such as oil

price hikes or drought-induced food price spikes. This is a much more bearish

inflation because supply shocks can create simultaneous inflation and recession—

the dreaded “stagflation.”

"Effort only fully releases its reward after a person refuses to quit."

Napolean Hill