Nifty has dilly dallied between 5600 and 5230 in the past 7 trading sessions and precariously hovering around the important 5480 levels with the political uncertainty not getting over with the likely withdrawal of support by ruling party's most corrupt ally. The positive effect of the post budget revival and JPC on the telecom scam has fizzled out and the threat of a lower circuit comes to haunt the index once again and it will be highly volatile sessions ahead with the government trying to salvage whatever prestige is left after the supreme court ruling on the CVC, bitter tussle with the ally, etc. etc.
There is turmoil and public outrage all around against corrupt and inefficient governments. Fortunately we have democratic institutions that are still functioning. It is high time our democratically elected members/parties understand that democracy gives the right to do only good for the people or else it is curtains and good governance has become a major issue. It is not the fundamentals that is wrong, it is the corrupt fundamentals of those ruling that is a major issue and has certainly caught the attention of the law-abiding citizen like never before. The market is hanging precariously around important support levels. It cannot go on like this for too long. If government falls a lower circuit is imminent towards 5000-4700 levels. If government survives then Nifty should sustain above 5555 for a very slow recovery towards 5900-6000 levels. The government will do well to seek a fresh mandate rather than buying out support from newer allies with compromises to hang on to power. With the uncertain political scenario, avoid trading if not already short below 5555 on closing basis. Happy and safe trading!
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