The election results have been highly in favour of the market anticipators. Nifty is now likely to gain momentum and rise above the stiff resistances
of 6320. Once the markets crosses and closes over that levels, we expect momentum to build up by fresh buying which is overall a good sign for the bulls. FIIs were net buyers and DIIs were net sellers during the last week. The economy is still underperforming, and may continue to do so for another couple of quarters – regardless of whether the NDA sweeps the state elections or not. But the market tends to look ahead. Increasing exports and decreasing imports leading to a more manageable current account deficit, plus rising forex reserves are positive signs.
The trend is still with bulls and no doubt today will be a gap up opening and a new nifty high . Need to caution only below 6210 and that level do not have any significance for today as we should witness nifty above 6350 level. At higher level we caution traders not to go for short either stay away or go with up trend. Investors be careful to buy good companies at these rallies.