Nifty 2nd July

As mentioned yesterday, market did bounce back after a little fall. Almost or could be the highest rally till date.
Surprisingly todays high on Nifty of 4107 is just the 5 DMA. which was to be touched any way.
This could be a break out for coming days or could be just a technical pull back.
Alot of stocks have given breakouts, but this rally should sustain. Hold on to longs until 4010 breaks. Below that we may see selling again.
Few things to keep in mind at this stage. One days pull back does not mean start of a rally. Fiis have been buying since last two days, but that is just short covering and they still have billions in short positions. They are not buying in cash market, which shows they are still not comfortable.
Oil is still an issue, an issue which might not affect any company but the entire economy over all. The burden of crude is huge to the economy and may slow down our growth. It does not really matter if we grow at 7% instead of 8.5%, we are still growing, but the issues lies when our practicle inflation is more than our growth rate.
The political interest behind the nuke deal. Weather or not the Left party would support congress on this issue. It ideally does not matter if they pull out. Rather things would get more streamlined since thats one good thing congress is intending to do before being wiped out in coming union election.