Nifty Spot Closed at 5322
Nifty Spot Supports at 5238-5120-5049
Nifty Spot Resistances at 5421-5512-5630
Trend – Mild Bullish.
March was range-bound month for market. After 7 consecutive weeks of sharp upswing, We saw 4 weeks of market consolidation and some correction. Technically, Nifty is bullish above 515 which is also 200 DMA. On 29th march, Nifty hit 5150 but bounced sharply from 200 DMA and now trading with mild bullish at 5322 level. The single most important reason why market is not falling so far is nobody is convinced about upside. Open Interest indicates market is balanced with not too much longs.
Q4 earnings will be better than analyst’s expectations as analysts are extremely bearish on the same line like Q3. RBI will meet again in April for possible rate cut. Although, Rate cut will be slower in 2012 due to high inflation. Fiscal deficit between 5.5%-6% is concern. Stimulus of US and Europe will bring liquidity in India. Overall, Fundamental looks neutral for month of April.
Until and Unless, Nifty Holds 5150 spot on closing basis, The only way to beat the street is to have only one side approach BUY on DIPS. closing below 5150, Market will bearish for Short as well as Medium term. For short term, On Upside, Nifty spot will face resistance at 5421-5512-5630. On Downside, 5218 and then 5120-5049 are key support level. Long term is bullish. One should continue to HOLD/Buy on Decline fundamentally strong scrip’s for 1-2 year time frame. We maintained Bullish term outlook for whole 2011 and we are doing the same for 2012 too.
“Trade with Levels not with Hope”