Middle class eats expensive ice cream, cribs about price rise: Chidambaram

NEW DELHI: BJP on Tuesday lashed out at home minister P Chidambaram for his remarks that the middle class is ready to pay for mineral water and ice cream but can't bear an increase of Re 1 in price of wheat and rice, saying he has shown insensitivity towards them and ridiculed them.

"It seems that Mr Chidambaram has inappropriately made a scandalous remark against the middle class and is ridiculing them. BJP would treat this remark as a complete hate statement reflecting the inner contradictions of the government itself," BJP spokesperson Rajiv Pratap Rudy said.

He claimed that while the government has failed to deliver and rein in prices, control inflation or find a way out of the economic mess, the home minister has chosen to "torment the hapless common man".

Rudy termed Chidambaram's statement as bizarre. "This stinks of complete insensitivity and BJP completely deplores the words of Mr Chidambaram. But at the same time nothing better is expected from this government and its ministers," he said.

Another BJP spokesperson Shahnawaz Hussain said Chidambaram does not understand the pain of the common man as he is confined to "air-conditioned rooms and flying in planes". "Chidambaram and the Congress are far removed from the common man. His comments are a joke on the people in a country where 50-60 crore live below the poverty line," he said.

Condemning the statement, Hussain demanded that Chidambaram tender an apology. 

This is UPA and these are policy maker's thinking. Can you expect any reforms who do not know the problems? I am ashamed on behalf of Indian citizen --- Praveen Kumar

10 July ’12: Nifty Elliott wave Analysis: Failure of 5343 can be confirmation of fall but keep an eye on 5260 levels first.

You must read previous articles and watch above chart carefully to understand this article completely.

Today’s outlook: -

We have seen a close below 5290 and an impulsive low below 5260. There is no great confirmation yet to conclude that we are going to see broader trading range. If Nifty sustain below 5260 then we can expect a dip.

My point is that it should sustain below those. It will be good if you watch out those levels on 5 minutes charts. If 5 minutes chart starts closing below 5260 then it will be first confirmation of big dip.

On higher side we will have stiff resistance at 5302 and then at 5334<5343. My views are very clear, I am expecting a dip. Will it come or not that depends on the break of 5260. I do not even know how long it will take to come near to my targets.

Best technical indicator of NIFTY: (You must note it) – 200 days moving average – Watch the trajectory. After 20 May 2011, it started rising from 5 June 2012only. (It was not rising even in Jan-Feb rise). So the rally continues from 5 June 2012itself.

Wave development: -

I am revising above wave plotting a little looking on current development. I marked end of wave 3 at 5194.60 and hence wave 4 is automatically revised at 5194 (raised from 5041.70). You must be remembering that I have quoted 5090 when it was saving.

First view is wave c = 1.618* a = 5343 (Already stated on Friday too in my intraday updates.

Second view is wave c =2.618* a = 5496 (Things can never be as simple in stock market as it looks on charts.)

Take another calculation, wave 1 = 4770.35 to 4898.95 = 128.60 points (Up)

Wave 5 has to comparable with wave 1 or wave 3.

Consider first with wave 1 – Wave 5 = 2.618* wave 1 = end up 5378. So we can say that 5378 will act as tougher hurdle to cross.

Let us explain with Wave 3 – 4847.70 to 5194.65 = 329 points (Up)

76.40 % rise from 5041.70 of wave 3 = 5288, which was roughly the high point of Friday’s trade.

I like to add one more point. This rally is running from 4770. From a top you need to put support at 38.20% as reversal point. Previously it was coming at 5029, now it is coming at 5090-5100 levels. Now, support if we see a high at 5343 then 38.20% will come @ 5125.

So you should look for 5343 as first hurdle and 5378 as second hurdle. Wave theory suggests that fifth wave advance can continue till 5343 but I am doubtful about 5378. Although I should not close any views completely so I will keep 5496 in my studies.

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Thanks & Regards,

Praveen Kumar

Mail id – Praveen@viecapital.com