(29-11-2011)
All the global markets closed strong yesterday but today is rest taking day and all the Asian markets are trading with modest gains. As climate is lukewarm today morning therefore Indian markets will also open flat and firstly trade near about yesterday closing within resistance range(4820-4870).
Pull back rally is on but very short term indicators are overbought after yesterday rally therefore minor intraday correction is due and that may be seen today and new phase of up moves will start after sustaining above mentioned resistance range.
Volatility is possible today due to following 2 reasons:-
1- Profit booking possibility on the back of heated sentiment.
2- Uncertainity due to FDI in retail issue.
FDI in retail is holding the key of next rally therefore its amicable solution is must for next rally above 4870. If situation worsen and Parliament does not work then it will badly hamper sentiment as well as previous week started rally.
Minor intraday corrections are part of pull back rallies and that may be seen today. Nifty will firstly trade and prepare for next moves betweeen 4790-4870,sustaining beyond this range will be next trend confirmation.