Since last one year, there have been innumerable predictions about market conditions and economy. From the time Sensex has gone above 10000 points level recently, we have been quite skeptical whether this level sustains or not. We predict things in order to plan. There is every possibility that any of our predictions might turn upside down anytime. Nothing is perfectly predictable.
Today, the markets opened on a very strong note. Benchmarks rallied along the lines of Asian markets on Thursday as sentiments in global markets turned bullish following the US factory and home sales data raised hopes the economic downturn is moderating. It is a great start to trade today.
Both Sensex and Nifty are trading higher than their previous close. At 10:40 am, National Stock Exchange’s Nifty was at 3178.65, up 118.30 points or 3.87 per cent. The index touched a high of 3189.65 and low of 3061.05. Bombay Stock Exchange’s Sensex was at 10293.70, up 391.71 points or 3.96 per cent. The broader index touched a high of 10327.40 and low of 10107.25. The market breadth is significantly positive.
Here is the detail view of Nifty for forthcoming days in the words of our Technical Analyst, Mr. Mayur Dharod.
The immediate target for this pull back is at 3230 which is the first target as per the retracement levels. Above this we can expect 3832, 4313 and 4795. 4313 being 50% of the retracement is a good level to watch out for.
Profit booking at 3230 would be crucial and sustaining above that would be necessary for the rally to continue. It may not be as quick and will test traders’ patience.
In case nifty closes below 3080 for few days, markets will go back into a bearish phase with the previous targets of 2500 and 2200.
Finally, if the rally continues one can also expect 5500 levels in Nifty. Not to forget Technical Analysis is about possibilities and 5500 is a possibility and not certain.