Nifty broke out of the upper channel line forming a fresh wedge which failed to move well. The closing was very weak with Reliance Ind falling 5%.On eod charts nifty has formed an inverted hammer. It could be an indication of trend reversal and we can expect some pull back tomorrow.
Another thing to note is that Nifty is 15% below its 3 months average price which is a huge difference and indicates some pull back in the coming days. More over it is 27% below its 200 days average which is again a good sign. In the short term there could be some fall or consolidation. This is a very good opportunity for long term investors. They can start buying stocks at this level and add more on dips.
RPL would be a good bet below 165 use every dip to buy. Cairn India has fallen after a long time, buy below 220 upto 202. GMR mentioned a few days back has shown some strength and can be considered adding in small quantity for long term.
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