==>> We are heading towards 5300 or 4800??

Markets are once again near to the recent high. As it approaches near the 5300 levels, Will the Nifty again see another round of sell off??? Will the markets continue to rally after nearly 2 months of consolidation??? Will the FII’s continue to be in buying mode.???

Nifty finally closes above 5250 levels but will face stiff resistance at the 5300 levels. In the past also it has been seen that the traders book profits at the 5300 levels in Nifty. This time it seems that the Nifty after consolidating for most the weeks in Feb & March will surely try to cross the 5300 levels. FII’s seems to be in the buying mode since the Budget announcement in the late Feb month. Since the Budget Markets were into the consolidation mode, but since the start of this week markets have continued its rally.

Major Indices (Sensex & Nifty) surged more than 2% each. Nifty rallied to 17 points on the last date of the week to close above the major resistance level of 5250 levels. Sensex closed higher by 17578 up by 60 points on the last day of the week. Sensex surged 2.4% in week. Midcap stocks were seen on the buying speer. Index rallied nearly 1.3%. Rally was mainly due to buying in the Power, Telecom, Metals, & Oil & Gas companies. Metal Index surged 3.5% which was mainly due to Tata Steel which closed up by 5.7% on week on week basis. Hindalco by 5.7%. Infosys surged nearly 4% in a week which helped IT index close 3% up. OIL and Gas Index closed 3.4% higher. Healthcare Index was up 2.7%. The only Index slipped in the red was the Reality Index which sinked almost 1.7%. The recent Real Estate has also not performed well as compared the other IPO’s. Real Estate firms are finding it really hard to raise money from the markets.

Since the start of the week, the only counter which was on everyone’s radar was RIL Ind which shot up 6.7% Bharti closed up nearly 4% after been badly hit in the last few weeks. Rcom & Cipla surged nearly 6%. In the ongoing battle between the ITC & HUL, HUL bounced back in the current week by 4%. M&M tanked 5.1% in the current week. Other Mid cap and the Small Cap stocks which saw a huge rally in the week were Usha martin, Skumar, Jayswal Neco, Insecticide which rallied in the range of 35-30%. MSK project was locked in the upper circuit after the buy of majority shares by WelspunGuj. Prism cement, IBreal 8% & Moser Baer 5%.

Nifty closed above one of its major resistance levels of 5250 levels. But the Nifty will continue to face stiff resistance level of 5300 levels also. In the past also we have seen traders booking profits at these levels. Before the Budget also the Nifty tanked from these levels. In the month of Jan 2010 also we have seen that Nifty made a high above 5300 and tanked nearly 600 points to make a low of around 4700. In the year 2008 also we had seen some kind of similar correction.

FII have been in the mode since the end of the Budget. They bought nearly Rs 10K Cr since. In the current week also they remained net buyers to the tune of Rs 2.5K Cr. DII’s on the other side have been net sellers to the tune of nearly Rs.4.5K Cr since the Budget.

If the buying in the markets continues then we can surely be able to cross the 5300 mark. But the volumes in the markets volumes are still the matter of concern. Nifty chart is showing positive patterns. Nifty will have good support at 5185 levels.

BUY Relinfra above 1050

BUY Infinite Infra with the SL of 204

BUY Ril Ind above 1120

BUY Maytas Infra Del. Cmp 186