Nifty - Foolish To Be Bearish

The Nifty lost 13 points over the day to close at 5249. An
extremely volatile day for the markets yesterday as the Nifty (f)
hit the lower and upper end of the day’s trading range of 5250-
5295 a few times without any clear trend. We believe that the
corrective trading action in the last couple of days is healthy for
the ongoing uptrend. Even if the indices were to pullback further
and move down to the immediate support of 5200/17350 it would
not damage the set-up. After seven consecutive weeks of gains,
a week or two of sideways action would help the markets build a
higher base from where the next phase of the uptrend could
begin. The daily oscillators remain in sell mode while the RSI
study has witnessed a minor breakdown. The averages are
safely place below the price action and would provide support in
case of further downside. We continue to believe that the
strength in the US markets will not allow us to correct much. The
Dow (DJIA) and S&P 500 are looking set to test our MT target of
11000 and 1200 respectively. Overall, a volatile end to the weak
likely within the 5250-5300 zone.

Nifty is the benchmark index of national stock exchange and comprises of 50 major stocks of different segments. Today it opened at +1.40 points up by its previous close.