On the AGNEEPATH battle between bears and bulls in Mumbai (Dalal Street), Bulls won!!!! Bears(Kancha) tried to overcome bulls by supplying cocaine at low cost (gaps on the lower levels in case of NIFTY) but remember "good always wins over bad" :D. NIFTY had been in downside channel since the high of 6338 in Nov 2010 but that has been given a breakout close last week as you can notice on the weekly chart. NIFTY has bottomed out near to 4650. As i said there are some bearish element left behind in last rally say 4 gaps etc but right now bulls are in no mood to give any chance to bears to overcome them. Technically markets has entered the overbought zone and expectation may be expected anytime. But Simply saying we may see market resisting near to 5450 and 5660 over that. On the downside now we can have support at the previous resistance line i.e., 5260. You may question that what abt 4200 that analyst were talking?? THAT isnt IMPOSSIBLE but we need some solid reason from global markets- Its just same as India beating Australia with 9 wickets in Australia. Not impossible but we need some good play. Banking Sector is in some pressure so be cautious on that as it has already rallied. Watch out for stocks which has rallied lyk OIL, ONGC, GAIL, NMDC etc. FII has pumped in around $2billion in Jan which is a record investment in one month. We are even expecting a solution from Europe crisis. So all together we are having a positive momentum this time around.So right now stay long with stop loss of 5260 on weekly closing basis.
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