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NIFTY
Nifty was trading below 5980 until 3pm but then had a
sharp recovery and closed the day above 5980 and also
above the physiological 6000 mark, mainly on the back
of ICICI Bank, which surged 7%.
In the last one month Nifty respected 5980 six times on a
closing basis; and today also it took strong support and
recovered.
5980 is a crucial reversal point, as below 5980 the
Bearish pattern would lead Nifty until 5700.
On month on month basis the index closed in the red
but in coming weeks we expect Nifty to rally until 6160
and then till 6220.
As long as 5980 holds, on a closing basis, our bias
remains upward.
The BSE IT index
The BSE IT index on the weekly chart appears extremely
overstretched.
Momentum indicators are in the overbought zone (RSI
reading above the 70 mark); and also turning into Sell
mode with negative divergence.
We advise build short positions with stop loss at 6400
and downside target of 5500.
Best Sell picks: Wipro and Infosys
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