Winning Strokes: Think different:

As expected and as mentioned yeterday in this blog, Inflation falls marginally to 12.40% and hence I had recommended Reliance Industrial Infrastructure Ltd(RIIL) yesterday for very good decent gains in the days to come. Reliance Industrial Infrastructure Ltd apart from other stories would give good gains as it is now listed in the F & O segment from 21st August, 2008. If we look at the charts we find that the it is in the highly oversold territory and a bounce could be expected at any time. Reliance Industrial Infrastructure Ltd(RIIL) in the medium term is moving towards Rs.1300--Rs.1400 after breaking Rs.1060 in the very short term: Moreover we could see a rally in the big daddy Reliance Industries Ltd tomorrow. I had already recommended the scrip yesterday:

This is the Reliance Group company (RIIL) in which both Mukesh Bhai and Anil Bhai has interest: Since the inflation monster has been tamed in the short term and hence wait for a rally in the Real Estate/ Construction/ Banking stocks today:

U B Engineering Ltd/Sunil High Tech Engineers Ltd are expected to do well in the days to come: Keep Watch on Kavveri Telecom Products Ltd (BSE Code-->590041) and Jayshree Chemicals Ltd( BSE Code--->506520):

The US economy pulled out of a dangerous rough patch in the spring, thanks largely to strong exports.Gross domestic product, or GDP, grew at a 3.3 percent annual rate in the April-June quarter, its fastest pace in nearly a year, the Commerce Department reported Thursday. The revised reading was much better than the government's initial estimate of a 1.9 percent pace and exceeded economists' expectations for a 2.7 percent growth rate. The rebound followed two dismal quarters. The economy actually shrank in the final three months of 2007 and barely budged in the first quarter at a minuscule 0.9 percent pace. The 3.3 percent growth in the spring was the best performance since the third quarter of last year, when the economy was chugging along at a brisk 4.8 percent pace. This triggered a rally in the US markets.On Wall Street, the GDP report lifted stocks. The Dow Jones industrials were up more than 180 points in afternoon trading. For months, housing, credit and financial troubles have hammered the US economy and now it is in the recovery path:

Giving a little respite to the hapless consumers, inflation slipped marginally to 12.40 per cent for the week ended August 16 from 12.63 per cent a week before. Earlier Lehman Brothers expected inflation to increase to 12.82 per cent y-o-y from 12.63 per cent in the previous week, due to higher prices of food articles, rubber, sugar, paper products, oilseeds, textiles & rubber and plastic products.

"We expect the final WPI inflation to peak in Oct/Nov at around 13.5-14.0 per cent, but to stay in double-digit territory until February 2009. Based on our forecast of slower GDP growth of 7.3 per cent in FY09, our energy team's forecast of the price of oil falling sharply to $90/bbl in Q1 2009, plus favorable base effects, our forecast is that WPI inflation will start turning down decisively in January 2009," it said in a report.

It is the 27th consecutive week the inflation rate has been above 5.5 per cent, the RBI's original target for inflation at the end of the fiscal year in March 2009. At a policy review in late July, the RBI raised its key lending rate by 50 basis points to 9 per cent and also increased banks' reserve requirements, and said it was now aiming to bring inflation down to 7 per cent by the end of March.

The government has said the inflation rate would hit 13 per cent and thereafter start moderating from December, before settling at 8.0-9.0 per cent by the end of the fiscal year in March. A slide in prices of oil, India's biggest import, to around $117 a barrel from a record high above $147 in mid-July, is expected to ease the pressure on inflation. However, analysts said pressure from primary articles and strong demand despite the several rounds of policy tightening would most likely propel inflation higher for some months.