Nifty closed in red at 5278 after delivering an absolutely flat session.The markets opened flat with no surprises,after the initial stagnate movement markets rose to 5300 but failed to violate and finally closed at the opening mark.Today it seemed that the bulls were in no mood to party neither we willing to let off the gains,but surely markets will need some vitalizing nutrients to feed and keep this rally sustain ,failure of which could possibly lead to rally to fizzle off.The overall market breadth looked positive with 974 advances to 515 declines.
I would like to comment here that we are looking strong on the charts,but fundamentally we are still lagging .In such cases the further continuation of the rally till 5600 looks suspected.Considering the current sentiment we might be able to touch 5400.then some technical correction is expected.We are now trading above all the moving averages,this makes us to hold some of our gains moving forward.5400 would not be achieved in a straight line move, probably if some negative news flow in then it might consume a week or more.
The technical indicators are positively biased supporting the prevailing trend.Going further if correction occurs nifty is likely to take support at 5190 levels and again head upwards.For the coming days traders are suggested to buy on dips,long is the call,also maintain strict stop losses
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