After a day’s rest the bulls are giving it another charge it appears as Gift Nifty is suggesting a strong open that should now take the Nifty towards the next target near 245010 to 24650. The FII net short on Index futures is down to 24840 contracts, indicating some rapid short covering over recent days. The long positions have now gone up to 40%. So there is support coming in from them to push markets higher. The immediate support zone is 24300 and until prices go below this levels, bears are not in the game. Bank Nifty has also traded into a Gann cluster resistance zone (see attached chart) near 54770-55220 and I wait to see if there is some price action here that might hint at a correction developing. Axis Bank results were flat and will not help. If individual Bank stocks slip then we may see some slide. Tighten stops on all if long. Watch May 55200ce and if a slide occurs, this can be shorted with a stop above 1210. Stocks continue to remain mixed with positive response to good results and so slams on poor numbers, revealing that the sentiment still favors the upside. In sum, continued bullish but watchful as both indices are running into price resistance clusters. Weekend may lead to some trimming at higher levels. Turn date is next week (28th) so dont want to go short yet unless price action is clear.

Bank Nifty struggled a wee bit at the highs while the Nifty did well. Long liquidation seen in Bank Nifty and some pvt bank stocks. So, more stalling ahead? Nifty chart was a Doji and continuation higher would shift the game there. Nifty next50 is even more bullish. Midcap Nifty is still the most bullish. So, market moving along expected lines. Financials ADR were seen sliding while IT stocks, that were in play yesterday, were seen strong in their ADRs. So looks like some sector shift towards IT is going on and it should spill over today. There are a bunch of stocks from the IT space that are due out with their results today. If in sum, their performances are not good enough, then the prices will peel off, since the prices are already moving ahead of the numbers.

Another day, another gap up and a good finish. Suddenly, our indices have become like Gold- moved up so swiftly so high that everyone is now scared of buying! No more talk of Mandi!! This is the beauty of the market- it is always so incredibly quixotic! And that is what keeps many of us hooked to it. Of course everyone loves it when it moves up but we also know that such speedy moves don’t last very long either. But we need to play it as it happens, too. Everyday across the last week, one could have said I will buy on a dip. But its been a straight rise, and has caught everyone unawares and dip hasn’t come yet. Those trapped with longs from earlier are happy to bail out without losses now because the indices has come back to the Feb levels (which is where some serious fall happened). Is that the case with stocks, however? Not really. But many of them have got repaired and that ought to be a relief for many. Take what you get, is the philosophy right now