The rally continues. Resistances have come and gone and the market is at the doors of the 200 SMA. Is a new bull market born? What does one do in the current scenario?
1. The relentless march has been on the back of FII flows. Dollar is back to 49.50 from 54. In a month's time have the fundamentals changed so much? It is the FII money which is pumping the markets up on steroids.
2. This also means that either the fall from Nov 2010 is over or it can be broken into A - B- C legs. A was 1807 points. B leg can have targets of 5432 and 5648 followed by a C leg which can terminate around 3800.In this case, B leg can continue for 5-6 months till the month of May 2012.
3. This could also just be C-2 which is exceptionally powerful and terminate around 5250-5300 to commence the fall.
4. Till the FIIs keep pumping in the money there is no way the markets will fall.
The market is at a tricky juncture with no clear answers. The best is to wait out for clarity to emerge. First signs of a correction to this up move comes below 5123.
For those interested in mid caps and large cap picks, we have Lakshmi's Cherry Picks and Mid cap ideas.
Nishit, If it is C2, What is the confirmation that downfall has started? Or is there any chance of one more shot at moving above 5220?
ReplyDeleteSIR 5100 TAKEN ON CLOSING BASIS PLEASE CAN YOU UPDATE THE TREND OR sl FOR SHORTS
ReplyDeleteA break of 5000 confirms down=move till at least 4900-4950
ReplyDeleteBelow 4800, this is C-3