Nifty gave a very smart pullback today, Sensex gave a decent gain of 412 points to close the week’s trade at 8757 & Nifty gained 101 points closing the trade at 2720. For the week ended, both the index gained nearly 5% WoW. The 3 days trade witnessed a good buying in all the sectors. The US markets also accelerate the pullback rally. Today’s gain was the biggest gain for the year 2009 till nowand the bull run was lead by Banks & other Large Caps.
However, i dont see a major rise from the current levels. Nifty has a uptrend stop around 2750-2800 levels but the support at the downside is seen at 2500-2400 levels. The medium term story for the markets remain weaker. And if the 2400 levels are breached, we may see further bloodbath to 1800 levels on Nifty. Due to the eventual drama like Elections, Inflation, IIP, G20 Summit & other few factors, its very hard to say when we can expect a fall. But the fall is for sure. I dont know when we will touch the lows but we will touch the lows for sure.
If we have to come out of the bear rally, Nifty has to witness good buying volumes till 3100 levels. Till 3100 on upside is breached, we remain in the downward trend. As of now, the Nifty is at peak levels for the range & so we may see some profits booking & we can even expect the Shorts building in the March & April Contracts. So one can consider going short in April Contract with big stoploss of around 3000-3100 levels. The current rally can add 80-100 points more on Nifty so traders can start Shorting at different levels with averaging techniques.
The concern of “Growing NPA’s” remain to tickle the Banks Balance Sheets so we may see some huge volumes of trade with downward bias in Banking stocks like ICICI, AXIS, SBI & few others in the coming days. Overall, remain cautious, do not get carried away in this relief rally. Further, the appropriate trading calls will be given here on the page & sms group as soon as they are generated. Keep visiting the site for the trading calls & earn good profits.
