MARKET OUTLOOK: Finally traders and investor witnessed their dream level of 6500 in NIFTY Spot on 7th March 2014. In last 5 trading sessions, NIFTY has given single directional run of more than 300 points. Considering the levels in last fortnight, this run of 500 points is phenomenal. Some improved domestic economic data i.e. GDP Numbers, CAD data, inflation numbers and more importantly hope of rate cut sooner have given tremendous breakout on chart. Considering the levels since 2008, NIFTY Spot had continuous resistance between 6300-6350 range but 1st time in December 2013 NIFTY hit historical mark of 6400. Reversal from that level and correction till below 5950, once given thought that highest level for this year has been formed and now market may again slide down. Proving wrong to most of the market analysts, NIFTY Spot not only broken 6400 but also formed new high above 6500 in previous session. With this breakout NIFTY Spot has come in uncharted territory and now analysts can assume the levels according to some indicators or calculators. We also had a study and found that previous day breakout may sustain bit longer. Now NIFTY Spot has major support around 6350-6320 in downside whether in upside 6600-6700 levels are quite likely till the elections result. We have witnessed in recent past that sometimes market trades in quite narrow range and considering this factor we bet on 6400-6420-6550-6580-6600 range. Overall we expect broader range of 6300-6700 till elections whether 6400-6600 range expected till end of this series. After Friday boom, Mondays session has been quite important. In case of violation on 6550 in upside, this mad run may continue to 6000 or higher levels but for sustainable move its important that market run through couple of consolidated sessions. Traders can have Buy on Dips strategy unless 6400 level holds whether bold and active traders can take risk of selling on higher levels with strict SL around 6650.
Posted on: Sat, 08 Mar 2014 07:50:15 +0000