Monday, February 14, 2011

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.

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