It is an impressive post budget rally. The Market has moved most of the indicators has short term positive with generous help from the FIIs.Does it face any resistance on the upside or is it a smooth ride ahead?
1. The 80 percent retracement of the fall from 5310-4675 comes to 5183.
2. If we draw a trend lie connecting the tops from Jan'08 to the one in Jan'09 the trend-line comes to 5180 - 5200 zone. If we break this, we are likely to make new highs in the region of 5500.
3. The monthly pivot is at 5183 level.
4. On the fundamental side, we have the advance tax payout season. But, in spite of this the markets had rallied last year.
5. The NMDC FPO hits the market next week.It will suck huge liquidity from the markets.
6. The US Markets have rallied and if they rally any further are on the brink of making new highs. The Greece situation has stabilized. Will it be Spain next? Remember Bear Stearns started it all off but Lehman was the catalyst. We may see more cockroaches coming out in May-June.
7. We have crossed all the moving averages on the upside. We have a slew of supports in the range 4930-5000 and resistances around 5180-5200. This may be our range for the month of March.
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