NIFTY UPDATEAfter making every body bearish the markets made robust gains today with all sectoral indices closing with substantial upside. Auto, capital goods, power and banking were the biggest gainers in today's session and FMCG, metal, realty and consumer durables, too, closed with significant gains. The Sensex closed at 16454, up 434 points from its previous close, and the Nifty shut shop at 4997, up 134 points. I was bullish since so many days but it tasted our ultimate patience and made me bearish also. but I was stick with my views and ultimately it gave me a very good singal day profit. I told you in my previous session that we will see a blasting rally after 4920. I had a target of 5020 but it went to 5010 today itself. Now what next?
Nifty 1460300 shares in open interest and 4900 call decreased 463750 shares from open interest.Nifty 5000 put added 884850 shares in open interest and 5000 call added 33550 shares in open interest. Still no decreased in 5000 call open interest. Nifty future closed 2.73% up and negative open interest decreased by 2.46% indicating clearly that there is no fresh buying only shorts have been covered. So this rally is considered as a short covering rally.
If market closed tomorrow above 5020 level we may see 5060 and after that 5095 level very soon till this weekend. Now suppose that if nifty give a close above 5090 on weekly basis we may see a blasting rally up to 5300 next week. As per slow stochastic and RSI it is highly in favor of bulls. Smart money would have been waiting for enter in the market at lower rate. If market come around 4960 spot level one should buy nifty there with stop loss at 4920. Tll yesterday market was in the position of sell on every rise. Now it has become buy on every deep until it is above 4940.
Nifty next resistance at 5060-5090. I expect weekly closing above 5090 level. After a good jump it may consolidate around 4980-5020 level in first half session. There would be buying opportunity or exit from short opportunity.
