Nifty could not hold the support levels of 5200 levels and broke below that , but if you analyse the fall mathematically 5180-5185 would be an important level for nifty futures and there is a possibility of a minor pull back rally from these levels. Though it can give a minor rally it would most probably be sold into and it could face enough resistance at 5330-5360 zone. If it remains in the same range it could be good for nifty as there would be a good accumulation pattern. We were focusing on the rally of base metals for some time and a rally in copper was mentioned a week before(read 19-23rd March weekly post). The major hypothesis for nifty being in a range is majorly due to this rally. As long as copper continues its upward trend it can help nifty in a very positive way. Though crude can be a negative factor it can cool off after one more rally. In a nutshell nifty should play a longer range bound market to see new highs. Though nifty fell about 100 points from the high the selling i could not see any long unwinding happening in the market and volatility data shows heavy short positions on the top. The up move in volatility index would make nifty an option writers paradise. The negative news flows in the domestic front is affecting nifty in a bad way and as an investment option i would like to start accumulating Reliance Industries at the current levels of 720-730. Make it as partial investments and complete the investments in 630-730 region. The structure still remains weak and 5070-5100 is quite possible but as i said earlier it is not a market to go short from these levels and investors should look for good buying opportunities like Reliance.
We have time cycle dates coming around 1-10 of April and thus be cautious on short positions at lower levels. Lets keep a range of 5150 - 5290 .
We have time cycle dates coming around 1-10 of April and thus be cautious on short positions at lower levels. Lets keep a range of 5150 - 5290 .
