The week past and expected
The market has rallied for seven consecutive weeks however; in the last week we have seen that the market has slowed
the pace of advances. Even though the market has gained nearly 100 points on Nifty as per the opening of the week the
market has failed to do much above the closing of previous week (5263/17578). Second, the market is near to highest level
of last 52 weeks that may not allow bulls to go wild before successful breach of 5310 level and bears may try one more
time to push the market lower with a minimal stop loss just above 5310. The mid cap index rose more than the advances
in mainline indices, it means that the activity is again shifting to futuristic/thematic stocks may be due to main line stocks
are trading at the highest P.E. band of the current year.
In brief, we may say that any failure to breach 5310/17790 may lead to short term pull back (downward). It means short
term and positional traders should be cautious while adding fresh long positions around 5300 levels but at the same time
any decline to a proper support level 5200/17270 or 5150/17150 will be an opportunity to buy with a medium term
positional view. In case the market reaches these levels then we may expect one more bounce back that will lift the
market beyond 5310 levels may be up to 5450/18150.
For the day, we will give due importance to Friday's lowest levels (5260/17550) and in case the market sustains below the
same in the second half of the trading then we may expect quick sell off to 5230/5200 levels. On the higher side 5310 will
be the resistance and sustenance of the market above it will lead to short covering in the market.
