It was a mind-blowing rally on D-Street. The Nifty rallied to close at 2009 closing high of 5178. Santa Claus had come to town. Lets see where we can go from here.
It was a Bear Trap nicely set by having huge OI built at 5000 and 5100 calls. This is the third month running that OI has been used to mislead the punters.
The Markets rallied as anticipated from 4944, key support areas. They retraced all the losses made in 5-6 sessions in a couple of sessions. The Faster retracement theory states that this is a fresh up move.
The FIIs made huge purchases on both Wednesday and Thursday thus debunking that they are on vacations.
The FM came out with rosy GDP projections which proved to be trigger. Remember the Government has massive disinvestment to be made while the going is good. Expect more such noises.
The Dollar Index rallied from 74 to 78. It may retrace a few of the gains made. This rally in Indian equities has some more steam left.
The famous December - April effect will now come into play. I will post more on that later.
The US markets look all set to rally to their next pivot point of S&P 1166. That is a good 4 pc more up-move.
5300-5350 seems to be the next target areas based on both fundamental and technical factors.
I continue to SIP in Gold.
Remember while enjoying the present, on must plan for the future. What 2010 holds is a different post altogether. Lets use these holidays to plan for 2010.
Enjoy your Investing.
One could play this up-move by buying Reliance at CMP with strict stop losses.