Technical Buy

Buy Greaves cotton ltd with a target of Rs 90 for a period of 3 months. 

Currently its trading at Rs 66. 

As per following technical parameters its coming to be a buy:

100 day mva : its trading above its 100 day mva. 

MACD : As per this indicator also its coming to be buy. 

Trendline: Its current chart is forming a upward trend. 

Sensex slipss !!

Inspite of the early gains in the sensex, the sensex ends up in red. Why ? The reason fir this is the higher WPI of 7.52. 

This higher wpi raised the concerns of a hike in interst rates by the RBI in its meeting schduled to be held later this week. 

Economic crisis ?

With the beginning of the elections, the indian govt is going to face the pressure of keeping its fiscals goals under their limits. UPA has felt the heat of state elections and in order to sustain its power in other states it would have to loosen its wallets and have to spend with both hands open in order to win the trust of the common man. Already the govt has exhausted its 85% of the expenditure in first half of the fiscal, with very little remaing for the other half and that too in the election times. So its hard to believe that govt can restrict its fiscal deficiet target to 4.8%. At this point of time govt cant even think of reducing the subsidies on diesel etc. In fact govt would try to lure the common man by offering more subsidies and other welfare programmes, that would lead to presure on govt funds and in a way lead to increasing of fiscal defciet.