The bulls’ party is likely to be over if the Nifty moves above 4,300. This level appears to be the supply zone as traders were seen writing the 4,300 strike call despite 3 per cent rise in the index. Nifty’s close of 4,233 has been the upper limit of the current rally and hence there is little room for a fresh upside.
The Bombay Stock Exchange benchmark Sensex ended the day with a gain of 399.54 points to close at 14,253.24.
The wide-based National Stock Exchange index Nifty was up 122.10 points to close at 4,233.50.
Trading sentiment was largely bullish on aggressive buying by funds and investors, on news of good quarter-earnings by blue-chip stocks.
Analysts attributed it to a combination of good global markets and domestic short-covering. The Dow, Hang Seng, Nikkei, FTSE and CAC were all trading positive.
“After the bearish mood of the whole of last week, there was a lot of covering of short positions as the markets were trading at low levels.” Market men also said that the possibility of the monsoon picking up could have added to the surge in the markets.
Accumulate the stock which displays good Q1 results.
Today market may display sideways movements and some profit booking at higher levels. Watch results counters like Welpsun Guj , India info and Aban offshore will be swinging heavily. Tulip counter is in Positive trend and look for midcap IT counters like Tanla , Sasken, Tulip , Redington and also MIC elctronics.
HEAVY PROFIT BOOKING AT HIGHER LEVELS IS NOT RULED OUT , BE CAUTIOUS
AND TRADE WITH TREND BY PUTTING TRAILING STOP LOSS.
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