Nifty

#110 Nifty Update: Did you miss the flight to 5500?? Dont panic take the next Flight

“oh fuck, how can i miss the flight?? How can i sleep at the airport“!!! That was the situation of the retail clients in the last rally. You all knew that 4500 odd levels was important level and i had recommend to buy 50% of long term investment but still you all were sleeping and missed the flight of NIFTY. Anyways if u missed the flight than you have to pay higher price for next flight or if u are lucky enough you may get the tickets at best deal so is the case in NIFTY this time. NIFTY has given various breakouts in last 2 months. This Tuesday we saw breakout of consolidation rectangular pattern at 5440 and markets touched 5536. But dont worry guys you can still buy but wait for the right time. 5536 is the strong resistance and if it breakouts out go long with stop loss of 5490 or if you are lucky enough you may see correction upto 5280 which could be a best deal to get into flight of nifty tough expensive than 4600 but you have to travel. Technically all the indicators are in overbought zone and we expect a correction any time soon. We saw today that reliance and many frontline scripts have showed some signs of profit booking but banking stocks lead the rally today. A bearish harami pattern has been witnessed on the charts and if the open is below 5510 tomorrow and closes below the same level than we can confirm the reversal on the candlestick. Talking abt the inflation numbers, they cooled off but it was because of the high base rate of last year and still we cannot see any improvements of company results. This rally was purely because valuations were attractive but we cannot sustain at this level without any strong fundamentals. But many analyst are in belief that this rally may sustain upto budget and we may see 5800 levels. They may be right!! So our strategy would be go long if NIFTY closes or crosses above 5536 or else wait for 5440 or 5280 level to get in.. Wait for my next post!!! Till than bye bye.

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