Posted By : Kishore B.S
As expected market corrected to 200 day ema. Today’s fall was not a surprise. All the analysts are saying that Nifty is heading towards 5000 levels but i beg to differ here. Now comes the use of the huge cash pumped in by RBI through a CRR cut of 75 basis points. Liquidity is very high in the market as DIIs are high on cash. Nifty is at a very big support of 5160-70. Breaking this won’t be easy for the markets.
The European markets are showing a rally right now. Each market is up 1%. American markets are also showing a positive open. That will be reflected in the Indian markets tomorrow. As mentioned in my earlier article, Nifty is in a trading range of 5200-5600. So, it is at the lower end of the band. The call here is to definitely go long for immediate target of 5300-5350. Tomorrow i expect to be a gap up opening of 40-50 points. We have seen earlier that each time market has such huge falls, the very next day it recovers and many times even moves higher.
We are having expiry on Thursday. That is another reason for the high volatility in the market. There will most probably be a short covering rally. So, it is advised to go long in this market.