mkt ahead...nifty 04th april 2011...

well the nifty has hit the upper end of the rising trend channel. some sort of reaction may be expected from 5900-5950 range, trade cautiously on longs with positional stoplosses.

it was a sideways 'inside day' trading on last friday. resis to brkout 5875 sl on downside 5778 in the immediate near term on cl basis.

all the sectors showing just pullbacks from their previous medium to intermediate term bearish downtrend. except the IT sector which had undergone just a profit booking and is still continuing its bullish upmove.

the nifty50 p/e graph:

by using the valuations on current earnings of nifty50 stocks,

the intermediate term supports shown by the thin blue horizontal lines comes to about 5270/5190 and then near 4850 on the nifty.

nifty presently around 22 p/e which had offered large resistance to upmoves as well as pullbacks in downtrends on many many earlier ocassions.
the intermediate term resistance zone as shown by the gray rectangle that offered resistance between year 2009-2010 comes to 6050 and above lvls.