The Nifty is now at 5720 level touched after 18
months. The “Fall” from 6180 level registered in first week of Jan-11, made a
downward journey up-to 5400 in first week of Feb-11. Many investors got trapped
at this level. I know some serious seasoned players took huge positions at this
level continued to average up-to 5700 level, because all this happened with in
one month span, and the fall below 5700 is fast and violent reached 5400 with
in 7 trading sessions.
Now the markets took 18 months to consolidate in a
range of 5400 to 4700 level. Infy was at 3200 level, Reliance was at 1050
range, Tata steel was at 725 range, Bharati was at 350 range, SBI is in 2750
range, and DLF in 325 range. But the best out performer as a matter of fact is
TCS from 725 range, reached now to 1350-1400 range, where as ICICI maintains
1050 range. There much scope existing in the up move to catch up the new highs
where as the rally may not stretch with immediate effect.
The Global markets are at their best levels; DOW is
now close to its 5 year high. The DAX is my barometer and it still above the
support level of 7100, we have to review only it trades below 6950 level. On
Friday, the Nifty could breach the 5685 resistance to touch 5720 and closed at
5691 is a positive sign. I consider this month F& O closing will be around
5620-5580 level. So I prefer the markets buoyancy to take some pause before it
resume it’s journey. The local news is encouraging but the political uncertainties
also exist, may become a drag on the move to continue.
So the Nifty will resume the upward journey may be
from 5450-5380 level. I consider Reliance touch 796-805 level. The Bull Zone as
such starts above 5765, consolidates between 5765-5935 levels, but the second “Base Formations” happens above
5865-5935 level to cross 6400 levels. In this zone normally BULL trap may also
takes place as it was happened at 6080-6185 range.
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