==>> Nifty at 50% retracement level

Last week had been very good for the traders. As the Congress took the lead for the 2nd time, to take the head the government of India. Markets reacted very positively in India. On Monday, SGN Nifty was trading nearly +500 points and as the Markets opened in India, within seconds both the indices were locked into the upper circuit of 15% and reopening after 2 hrs hault, indices again locked in the upper circuit of 5%. Markets were suspended for the entire day. Next day markets opened positively and slipped in to the negative zone, but closed flat. For the next 2 days markets witnessed some profit booking. On Friday, the markets were very volatile. In the closing session indices saw some pull back rally. Nifty closed above at 4232 up 21 points
Last week, Indian markets outperformed their earlier records too in the last week. For the 1st time Indices were locked at the higher circuit. And on the next day the Exchanges for the 1st time, saw a mind blowing volumes of whoping Rs 1,50,000 crore. Volumes in the past week has been very good. Some of the stocks almost double in the last 2 weeks. If we take the Fibonacci theory from all time high made in the month of Jan 2008 i.e 6357 and the low of 2252 made in the month of Oct 2008, the 50 % retracement level comes nearly at 4320. In the last week, Nifty faced resistance at the same levels. Markets saw profit booking. Frontline stocks had a beating down, but the mid cap shares continued their rally. Some of the stocks rallied more than 50-60%.I had given buy calls on Moser Baer @ 67, DCB @ 36, Adlabs @ 308, Opto Circuit above 157.85.