Nifty has been under the onslaught of the Bears over the past several months and our advised levels of 7300/7500 zone have been achieved. We advise covering shorts at the current levels as the Weekly RSI is at extreme oversold zone and there can be a snap rally on the cards. The long term down trend can be assumed to be reversed only after the market has broken above the 8000 mark. A rally to 7700/7800 zone is likely and further directional movement can be assessed only after the proposals of the Union Budget are unveiled. Bulls need to be watching out for accumulation signals in the 7000/7200 zone before extending volume support. This is a good time for investors with longer time frame of greater than 3 years to start buying on every dip.
|BEAR SELLING OVERDONE?|