Brokers View on Nifty -Bullish trend after some consolidation

The markets ended the week with a flourish. The tempered inflation numbers gave the markets the much needed sentiment boost and the indices surged ahead. The Nifty closed at 5,112 up 112 points, while the Sensex shut shop at 17,126 up 405 points.

Sudarshan Sukhani of Technical Trends said we are seeing evidence that the rally is intact and tells investors to buy on dips. "There is nothing to disturb it as of now, so I am not surprised. The Nifty has been breaking resistance levels since 4,800. First, it was 4,800, now 5,000, and the next resistance is at 5,350-5,400. There is no reason to suspect the face of the rally. On some days, we are going to see consolidation, while on others we are going to see a rally as we are seeing today. The trade is to buy on dips."

He feels the next target for the Nifty is 5,350. "I would say 5,350 is a much more realistic target than 5,100. This rally doesn’t need to stop just now."

E Mathew of Mathew Easow Fiscal Services feels the upmove is far from over. "The genesis of this move can be trace to early April when volatility preceded the trend change. The trend changed when we formed a higher bottom at 4,630-4,640 and a significant higher top at 4,930-4,940. Yesterday, even in a correction we did not come down to that. We are certainly heading to a 200-day simple moving average which is located at 5,140. These significant levels for individual stocks which have a play on the Nifty tells me that this move is far from over. Next week, we should be taking out 5,140 which is where the 200-day simple moving average is located. If that happens, on every retracement after a small correction, the target for this move should be around 5,400."

Ambareesh Baliga of Karvy Stock Broking feels the markets can go up by 100-200 points. However, he sees selling pressure at those levels. "We could see the markets again settling down at slightly lower levels, closer to around 16,000-16,050. That should be a good time to re-enter the market."

Investors should book profits at these levels, Baliga said. "We have been telling people for the last 1.5 months to keep buying at every dip. At this point of time, we are asking them to book profits and stay on cash for a while. Once the result season is over, there won't be any further triggers. One could see the markets drifting down after that and that would be a good time to enter the markets again at lower levels."

Abhay Aima of HDFC Securities said he wouldn’t be surprised if the index crosses 20,000. "This is going to be a volatile year. The last bottom and stop was made and should hold during the year. I won’t be surprised if you see 20,000 index but I will be surprised if it crosses the previous stop this year. I won’t be surprised if it goes near the last bottom made on the index