The market action last week was more or less in-line with the outlook given in this column on last Sunday – "Difficult to see the markets sustain the rally too much above 29100/9000 for now. Keep a trailing stop-loss at 28749 (closing basis) and hold on to your longs as we move into what is possibly the last leg of the current rally. A time and or price correction is very much in the works."
Going forward, the Sensex has built up a strong support zone at ~28775; coupled with strong resistance at 29012. The chances of the Sensex attempting to break the resistance zone are higher – so build fresh longs at the current levels with a SL at 28746 and for targets of 29010 – 29060 & higher.
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