Today we saw great short covering in the large cap shares and even in Nifty future, that lead to a fantastic rally in our markets. This rally is one of the few intra day rally in our markets. On Monday i have clearly mentioned that investors should start buying, at least 15-20 % of the portfolio size. It was well informed on 18th March that the Nifty will definately take support at4450 ant the bounce back will be till 4900 levels. Congratulations for all the investor who bought at the lower levels and are still holding. Yesterday i have written that the nifty has a resistance at 4650-4700, and if it crosses then it will directly take the nifty till 4900 levels.
Further correction is still not rulled out as the wound that was happened is very deep and it is not so easy to heal. It will take some more time. We may see some more correction, but that won't be so severe. Inflation is still the concern in India.
Real estate prices have started correcting. In Banglore, Hyderabad the prices have come down by 10-15 %. This is the time for the Long term investors, and they should start investing in the markets. At least 15-20 % should be invested at the current levels. When the markets were at all time high people were talking about 6500 in Nifty and 23000 for Sensex, and suddenly the view changed drastically and the same people started commenting that nifty will be 3500 and Sensex below 10000...... WOW....... Till the time the support according to me is not broken, i will not comment on this....
Today we saw great short covering. Nifty also crossed and closed above one of the major resistance levels of 4800. Volumes were also very good. Please do not expect "V" shaped rally in our markets, as the investors, operators or the traders are still not confident about the market trend. Even the smallest bad news can create panic in our markets. Kindly buy only the good fundamental scripts and with a minimum investment period of 1 yr. Traders are adviced to keep their over night positions light.
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