"Both indices have made new highs and received selling pressure, profit booking since the rally is one sided during this month till now. Nifty futures discount stands at 15 points to the spot as of yesterday. But for Reliance Industries stellar performance, indices should have closed much lower. Marginal closing losses to flat cannot be a comforting feature, since the A/D ratio which opened positive and was maintaining positive through out the month has turned negative. 4550 on Nifty and 15450 are significant resistances where selling can be expected once again. The bull run is intact, and rotation of sectors and stocks should see the markets consolidate at the higher end of the range for some days;
US markets have created history by DOW breaching 14000 mark and trading over it for some time, before the profit booking brought it below that level, finally closing in positive territory. With ample liquidity in the system, any fall in our markets is a buying opportunity, certainly volatility shall increase from now on, if we are near the top. Top formation is a process and shall not happen in a day or two. Markets have digested the tech results in general and there is no major fall in the tech majors from this level, and shall move up if the dollar strengthens in the months to come. TCS results are encouraging, as their market mix made them to perform in troubled environment. Heartening feature of TCS strategy is having taken hedge of $2.5 billion at Re.40/- will give great strength to their earnings in the coming quarters. It is a buy on dips from now on.
The day's range for Nifty shall be 4450 (Support) and 4550 (Resistance); Sensex shall be 15000 (Support) and 15450 (Resistance)
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