Friday, February 25, 2011

Nifty Update

From a longer term perspective the trend is downwards. As per Dow Theory we got a sell signal at 5700. When do we get a buy, when we start seeing higher tops and higher bottoms which I feel will take some time to happen.

From a short term perspective while we are in this 5175-5589 zone we could be rangebound but if we breakdown below 5175 it is very weak for the market. 4800 is the next support which we hit in May 2010.

We have resistance at 5550-5600 zone. Time to be cautious, I would get bullish on the market if 5589 is taken out comfortably on a closing basis.

FIIs continue to sell.

Budget will provide a trigger, so let us wait and see how the market reacts rather than initiating any trades now.

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