Nifty has closed above 100EDMA 4912 and closed above important levels of 5000 in Nifty and highest close in 24trading days. We had a Nifty target of 4950-5100 and now we have closed @ 5017 and our target is near as published on 10/Feb/2010 http://akprabhakar.blogspot.com/2010/02/nifty-sensex-view-and-outlook-of-indian.html . Market correction from 5310 year’s high of 2010 to year’s low of 4675 we can be possibly seeing a retracement till 61.8% which comes to 5068 as the pullback, and any move above 5070-5090 this rally can see 5140-5160 levels before any fresh direction in market. Support for Nifty now comes around 4870 & 4775 and downside can be limited in this week as shorts would support market on downside. Market has retraced time wise for 24days correction we have seen 14days rally, So investors are advised to be stock specific and use rally to reduce leverage position as Budget has changed the stock & Sector preference and with Advance tax demand and March 31 book closure would keep the rally in check in days to come.
Sensex View
BSESENSEX 16975-17025 level is very strong resistance Gap-down level 17000-17025 has to be closed for any fresh rally. Sensex has strong support around 16460 on closing basis and important for technical investor would be Sensex closing above 100EDMA for 3consecutive day.
Caution: Budget has not given any negative surprise, and all data is very good in Indian market with forward earning @ 16-17times market doesn’t look expensive. But in my technical view I am not convinced about market so till 5200 above close is not seen I would prefer to stay light in market with 30% only invested.
