What with Nifty making new weekly highs.?
Indeed the trend has been positive where our leading index Nifty 50 is concerned, and the medium term trend continues to be positive. BUT IN THE SHORT TERM THE RALLY COULD FIZZLE OUT.
AND WE MIGHT SEE A CORRECTION TOWARDS 5050.
1stly our target of 5150 has been reached and we can take a respite before heading towards 5250.
Secondly the volume in the index futures has been below average in the past 1 week, hence not supporting the trend.
Thirdly 5100 Nifty PE has added Open interest and 5200 Nifty CE has shed Open interest.
These are short term factors and can lead to a correction but our original uptrend remains intact as the rise in index has been supported by rise in futures Open interest position. Moreover critical resistances have been crossed.
Stocks which are expected to fall the most are those in which the rise has been merely short covering rather then a genuine rally:
JINDAL STEEL POWER
Stocks which are inherently bullish and could be bought on dips are:
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