A channel beganing from the high of 2006 connecting the high of January/Feb 2007 and high of July 2007, shows that NIFTY is near its resistance.
Now, this happens to be a crucial level. One can expect a correction from here upto levels of 4300-4250. On break of this resistance line can lead to a further rally upto 4650.
Today I would like to give views for traders and investors on technical and fundamental grounds.
From Feb of this year we have seen market in a negative mode till May end. There after market started rallying but no retail investor or trader has made money. Its now after the Infosys results when market has seen a good movement, I seen targets being given for stocks which are 10-25% up from here. A stock which has already seen a rally would not necessarily rise so much. Stick to stock specific moves from here with stoploss. Mid caps will continue to rise, mid caps have seen a sluggish movement for last year and a half. Even if Nifty sees small correction, it may not pull the market down over all. certain stocks would tank which are over heated.