It's IIP Again

Almost it was a miracle when the IIP numbers reviled on Friday. It's been almost 29 years, the country seen such a growth on monthly bias. On the other side China has tightened it's reserve again by 50BPS from Feb 25. This news has initially dragged US markets lower to almost 150 point cut on DOW. But later Tech sector helped US market to cut down it's losses.

Monday Chinese and US market are on holiday. So we may have some mixed cues but not from the world markets. Hope's are high for a gap up opening. Inflation data may come later in the day, so traders who hold long position can book initial profits if opens gapup and reentry can be made after Europe markets.

Presented a Chart with Fibbo levels last week. Nifty closed above 38.2% retrace level and the next immediate target would be 50% which is at 4917.

See the following chart :

For the past 5 trading sessions Nifty has made higher top's and all other indicators are pointing for a clear break out. But traders should be very careful at around 4933 level, which I feel will act as a trend deciding level. Only a weekly close above 4933 will indicate the medium term trend to be bullish.


Nifty spot levels for the week :

4751 - 4832 - 4884 - 4917 - 4954

A reversal again from the levels of 4930 will drag the market below 4676 and the correction will be deep. Have some profitable trading days. :)