Nifty above 5300 : needs to sustain above it

Nifty did go below 5300  thus violating a crucial pivot point but  had an equally sharp bounce back. The improvement in geo -political situation may also improve sentiments and  lower crude prices  will augur well for Oil Marketing companies like BPCL, HPCL and IOC.
Banks stocks had a sharp bounce back and may continue to rise further. Budget related stocks from fertilizer sectors like United Phosphorous are expected to do well .
Jubilant foods , Kiri dyes are good long term bets at this satge.
Inflation is expected to cool down in coming months and China is also tightening its credit policy this will result in softening of commodity prices which again help in cooling off inflationary pressure.Therefore, this dip offers  an opportunity to  buy  with 25 % of your capital ( out of capital allocated for equity investment)

As long as Nifty is able to trade above 5300 the longer term bull market remains intact.

5300 is crucial now : Buy Kiri dyes in small qunatity

Nifty made a  down move as we wrote  this  probability of its going down  in our earlier post. Now as per the Dow theory as long as Nifty is able to trade above 5300 the bull market remains intact . Nifty going below 5300 will be a sign of reversal of   uptrend on weekly charts . If this happens then then the  long term trend line on Nifty weekly charts will be violated and the markets will be in bear phase.
Lets see how the events fan out in the coming week. Rising Inflation is already priced in. Geopolitical tension is likely to subside and back home the focus will be on budget session.
Pharma , Fertilizer and IT stocks will be on our radar .

Kiri dyes and chemicals offer a good  buying opportunity for long term investment of one year horizon. One should buy in small quantity  by buying  25 %  at a time.