The correction is good….

The correction in the markets is good for the long term investors. The rally was sharp and very few could venture to grab the opportunity. The world economic situation has not improved but the hope that could build on the extreme pessimism when Dow touched the 25 year low below 700 levels. Now such an extreme situation could suddenly emerge as a rally over that lasted for more than 6 consecutive weeks to create a history in US that was not happened in the past 60 years. The strength of extremism of pessimism made a Bear trap and now it can be gauzed with this heavy short covering lead Bull grip over the markets across the globe.
The cool off signs are emerging in all the markets and they are now enjoying the vacation at higher level as consolidation. So our Nifty could again touch 3080-3020 level due to our domestic issues. The confusion over the new government formation gets accelerated as the “third front” will emerge from political turbulence as the polling phases get closer to end by May second week. The tussle for the premier hot seat, the FM Budget and June end quarterly results will clearly provide the right direction to our markets.

For today, the Nifty is strong so long as it trades above 3360 level. The Bulls will gain strength above 3426-35 level but will yield to selling pressure incase Nifty fails to cross 3411-09 initial resistance. The high volatility may reduce and may get support at 3313-11 level, the second support will be at 3280-88 level. The Asian markets are flat with negative bias.

The counters that lost the charm are The RIL and ONGC. The RIL is weak below 1730 and face serious resistance at 1757-1751 level. The RIL will get support at 1665-67.
The ICICI bank is strong above 444-45 level but will become weak below 435 to touch 419-22 support level.
The Rel cap now facing bear pressure gets resistance at 551-49 range and likely to touch 480-475 range. For today it may get support at 491-93 level.
The SBI is showing good support at bottom till yesterday evening failed to hold the ground above 1306-09 level may get support at 1259-56 if it fails trade to trade above 1320 level.

The Rel Infra face resistance at 685-83 level and may find support at 621-23 once it trades below 659-61 level.
The DLF received a series of bottom support at 222-226 level for 4 trading sessions may once again get support.