Nifty - will the strength sustain ?

Today may be clearly the day of Midcaps. Many midcap stocks including those we had discussed in ITG gave good movements in an otherwise sluggish market. RComm, DLF and RPower gave nice moves.

Nifty in fact has given a 'doji ' formation at a 52 week high. Time for caution we may say.



The immediate support for the Nifty is at 5320 and a crucial support is at 5275 levels. Break and close below this level only can suggest an end to this upmove.

Incidentally, you may note that while the Nifty has been rising in the past 8 weeks the volumes have been lower almost each week. It may suggest that the 'biggies' are just trading for short term gains rather than actually pumping in money for long term.

I expect that the day of 'option writing' is not far off...

Happy trading !

CA Rajiv D Khatlawala
ValueTrade Academy
www.investogyan.com