The northward journey of the bourses continue for thte 2nd consecutive week. Sensex rallied 382 points and Nifty rallied 102 points higher then the previous week. The fall in the global crude prices trigerred gains during the last week. Crude prices fell from the a peak of 147.27 to close at 12.1 a barrel on friday. Oil prices may rise. In case it raises it will bad for the Indian markets, especially when the inflation is close to 12%.
Does that mean the party is over on the brouses? The answer is no. The reason is that there is no negative trigger to drive down the Indian markets and during the last week, foreign funds remained net buyers in the cash market, which is a bigh plus sign. Indo-US Nuclear deal will also prove to be good for the markets.
Technically speaking, after making a bottom at the 50% retracement level from the low of 3790 and high of 4539, retracement at 4160. Nifty has bounced back. It is facing some resistance at the trendline at 4425 levels. But a decisive breakout above the trend line will take Nifty to 4540 levels. Break above 4539, the Nifty will be in the new pattern formation of higher top and higher bottom formation. At the downside good support at 4190.
Buy Rpl above 170 tgt 174. above the same will take it to 182 levels. PUNJLYOD, RPL, SUZLON LOOKS GOOD, break out pattern.
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