NIFTY FIFTY --- LAST WEEK EVENT'S WILL THEY SPOIL THE PARTY OR GIVING OPPORTUNITY TO BUY FOR LONG TERM INVESTORS ?

After making low on 20/12/11 at approximate level of 4530 NIFTY started its uptrend. Last week there are lots of event like inflation data, RBI policy and union budget. Since there are no any positive surprises last week short term trend turned weak. So now the question is will this rally sustain?

As mentioned elsewhere on this blog Indian capital market is in uptrend as suggested by technicals.

NIFTY - DAILY CHART

As shown in the chart NIFTY after breaking trend line 1, taken support at 200 sma ( which is shown by brown line ) and after retesting the trend line 1 it started falling once again. 50 day sma ( green) is above 200 day sma (brown), so it is suggesting up trend, and current fall is correction in ongoing uptrend. If and only if NIFTY gives daily close below 5170, then and then only there is possibility of more down side.
Next week possibility of NIFTY taking support at one of following supports --
1) 34 day  ema approximate level 5300
2)  50 day sma approximate level 5230
3) 200 day sma approximate level 5165
4) trend line 2 approximate level 5275

there are other supports also, so in short there is cluster of multiple supports in the range 5100 to 5300, so its buy during dips.

NOTE: LONG TERM TREND OF INDIAN MARKET IS UP, UNLESS IT GIVES WEEKLY CLOSE BELOW 4530. ( this level will change according to future price action) . SO AS OF NOW OUR MARKET IS BUY ON DIPS FOR LONG TERM INVESTORS.

OUR TECHNICAL ANALYSIS SUGGEST THAT THE ONGOING SHORT TERM CORRECTION WILL END BY NEXT WEEK AND IT WILL RESUME IT'S UP TREND FROM 26 MARCH.

As of now data given on nse web site suggest that FII's are buying, while DII's are selling, but be careful if FII also start selling this whole party may get spoiled.

DISCLAIMER: This Blog is meant for sharing my trading ideas only and no calls to be taken as trading recommendation. Visitors please do your own research or consult your advisers for safe trading.