#125 Nifty Update: 70 points rain cools off all traders

NIFTY had been range bound last week between 5280-5327 which was considered to be consolidation phase. NIFTY has confirmed the flag pattern breakout on charts today which is considered to be bullish for near term. Fundamentally we have not received any cheering news for the traders but this rally is purely technical or investors are anticipating good news in coming weeks. Partial mining rights are given in karnataka’s ban which was lil thing to cheer but no FDI investing allowed is still a inflow problem which is depreciating rupee against all foreign currency. Globally something to cheer was that spanish banks have got bailout but on other side we are witnessing scams in LIBOR rate. Many american banks have started submitting their “Wills” which clarifies what shareholders and clients get if they go bankrupt. While Europe’s PMI number is still below 50 level signifying a downturn. Germany posted worst numbers for manufacturing in last three years. Accumulating all the fundamentals bears have more chances of winning. Coming to NIFTY technicals we have witnessed a Flag breakout which gives the target of 5425 but we have to speed breakers before that. 5360 is the strong level on weekly chart on closing basis which means this weeks close should be above 5360 while daily chart has 5384 has strong level for this week. Now all depends on few key data this week such as HDFC result tomorrow and INFY , TCS ans IIP Data on day after. So my call is HOLD your longs and add positions above 5360 and on downside exit positions below 5280.

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