|Last week the markets witnessed a terrific comeback and the rally was surprising. Midcaps saw a rise of 10-15%. A few reasons for the rally are as follows:
- Some massive buying from the FII’s.
- Prime ministers statement about better growth in 2013-14.
- Stability in global markets with the DOW touching an all-time high levels.
The level of 5800-5850 was supposed to be a major resistance for the NIFTY which has been taken off. So now all those traders who had gone SHORT are likely to cover them. This SHORT covering is likely to make the markets rally to a level of 6100-6150. 5800-5850 will now act as a strong support for the NIFTY. We must enter into the markets now with special focus on IT, FMCG and Pharma.