mkt ahead...13th sep 2010...

and again 5350 held like a strong support which prevented any further fall to the 5200 lvl and nifty bounced off on short covering and overall mkt buying and we had a straight 16 day uptrend which was so good that infact the feared 5585 resistance on the previously respected uptrend channel was also convincingly taken out on the upside.

most likely the nifty may now follow the new drawn channel as shown in chart with resistance coming at 5712 plus in the short term, crossing which a near term tgt may be about 5780/5880 or so.

on the valuation front, we are already in expensive zone(5550-5730) on nifty50(refer 12th july 2010 post on this blog), anything above this is euphoric and prone to sudden large moves and may not be suitable for investors but good as a fast trading play.

the resis for the day is 5666/5676 and a rough sl for near term may be kept near 5600 on closing basis.

larger picture: nifty is still in firm uptrend so far and the intermediate to long term tgt is about 6000 to the previous high, and large profit booking in between cannot be ruled out on stretched valuations.

short to medium term investors cl sl is 5345 whereas intermediate to long term investors in stocks/nifty etf's etc dont have to worry much and can keep holding although they can also book profits partially anytime the sl for 5350 is convincingly broken consistently or whenever nifty reaches euphoria or touches the upper end of expensive valuation zones.