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Archive for April 6th, 2011

Dips should be bought

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We have seen the markets in strong upward trend as it was anticipated after the breakout above 5550, it has already met with the target of 5950. There is flurry of activity noticed in midcap stocks & advancing stocks were far more than declining stocks. We anticipate stock specific activity to increase in coming days. Based on short term averages Nifty futures fall below 5850 will increase the downward momentum. On the upside 5950 remains as resistance which needs to be crossed for the next leg of upward momentum.

Looking to the current technical chart set up, medium & long term investors should use pullback as buying opportunity. It also looks like market is making base at 5650 hence from traders’ perspective risk for the current uptrend will increase if indices close below 5650 & short term reaction for the rise from 21st March could start if Nifty futures sustains below 5850 in this week.

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Written by Rakesh Gandhi

April 6, 2011 at 5:34 pm

Posted in Market Watch

Tagged with , , ,