Nifty closed in green at 5139 posting a splendid gains of 85 points on the board.The nifty has closed in green for the 2nd consecutive week after bouncing from the 78.6 retracement level.The overall market breadth was positive with818 advances to 624 declines.The markets are trading above the short,intermediate and long term DMA levels favoring the bulls.The upcoming is beginning with a big event of Greece election results followed by RBI policy on repo rate cut.With the move on Friday it seems markets have sensed the probable outcome and given a token of receipt to the bulls.
I may be presuming things but we never know when will the wind take a new direction.Hence we need to be cautious.As per the charts,market is showing strength and enthusiasm leading the rally,but my question till where will this enthusiasm sustain.We need to be very much rational about the market sentiments,since only this could make us read the picture more clear.
My initial target for nifty is 5200 ,if it could violate and successfully sustain it then we would see the markets rallying to 5400,where it might take a halt.On Monday we will see gap openings ,the direction will be decided by the outcome,but if in case the news-flow comes out negative ,there's a fear that markets may again retest the previous support level of 78.6 retracement level
Technically i suggest traders and investors to ride on the rally until we get a evident reversal signal.till then we may hold long positions
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