Whats Next for Nifty

Last week was very good for Nifty. It gave a solid close @ 5132 gaining 246 points in the week. Nifty is now sweetly poised for a short term rally. It faces resistance @ 5200-5225 zone and is likely to turn down from here. If this zone is sustained, expect it to rise till 5320-5350 where another tough resistance maybe faced.

On the lower side Nifty has good supports @ 5060, 5000 levels.

This week expect Nifty to remain sideways with a positive bias.

For now 4750 seems to be the bottom for Nifty and it does not look like it will be in a hurry to go below that level unless something drastic happens.

As long as Nifty keeps its head above 4880, one can consider this current correction that started in Nov 2010 as over. The overall direction of Nifty shall remain positive from here.

One can start buying into some good stocks recommended in my earlier post here.