Nifty Update

Nifty (and sensex) finally achieved the target given on 2nd May :) With everyone talking about 4500 effortlessly now ( I remember hearing about 3900 and lower levels being given just over a month back !), its time to reviews the near term course of Nifty. I expect 4415-4435 range to provide resistance on the upside ... and the risk-reward ratio is turning in favour of a down move from here on. Nifty might scale 4500, which is just about 3% from here ... the downside being 4200-4180 if we break below the level of 4270. In the last 6 months, there hasnt been one instance when we havent seen the Nifty shave off 125-175 points during the month and I wouldnt be betting on July breaking the trend. The results season begins next week and all eyes (and ears) are in Infyspeak. Its time to take profits off the table, in case you havent done so yet. I would be prepared for a 5% dip on Nifty, give or take a few points. Once we have seen the correction, it would be time to buy again... and as long as 4100 holds, we should remain in an uptrend.