Nifty above the 5600 levels….

First I would like to thank the “Informed Investor” newspaper, to consider me as a Speaker at the Seminar which was held at Thane on 04^th Sep 2010. At the seminar I had mentioned that the Nifty will continue the rally which raised many eyebrows. But still we can see the outcome. As mentioned in my earlier article that the Nifty had close above the 20DMA and RSI has given positive divergence which could lead to rally for the current markets. The last article was for the week ended 02^nd Sep 2010, so that did not consider the price movement for the last day of the last week.

Indian markets maintained positive momentum throughout the week and gained nearly 160 points on week on week basis. Sensex gained more than 575 points. Banks had their dream run on the browsers. Sbi gained the most from the lot. Ril too bounced back from its low of 925 and closed above 960. Piramal Health after seeing blok deals since the last 10 days, is now on the buying mode. Special dividend by the company will definitely prove to be a positive trigger for the stocks in the coming days.

FII’s remained net buyers for the week, But DII’s on the other side kept on profit booking.

On first day of the week Nifty closed marginally below the opening, but in the evening global markets surged nearly 2%. On back of that Indian markets opened with positive gain and closed higher. MACD had given buy signals on that Tuesday. Nifty closed higher and the rally continued and closed above at 5632. Sensex closed at 18799.

Sensex will face resistance at 18886 – 19162 levels. Nifty resistance level is at 5663-5677. Nifty if closes above this we can soon see Nifty making high of 5750 levels. Indian markets may see some wild movements in the coming weeks.

If we see the Nifty chart through the Wave theorey, this could be an extension of the 5th wave or the 7th wave. If this trend continues then we could see Nifty at 6000 levels within 2010.

Last weeks call:

Buy Tata Steel above 547 with SL of 539 made a high of 596

Buy Ril only above 945 with SL of 925 made a high of 970.

Buy Axisbank above 1388 SL of 1360 made a high of 1405.

This week Call:

Buy AB Nuvo above 880 with SL of 863.

Buy Bob only above 848.

Buy Bel above 1745.

Sell Cairn with SL of 330.

Sell Cipla with Sl of 310.

Buy Hdfc with Sl of 2239.