Sell or hold?

The Nifty has a very strong resistance at 3200. It can test this resistance this week.

Momentum indicators are very positive for Nifty. Volatility shall also come down as Implied Volatility of Nifty Options are correcting from higher levels of 80 per cent.

However, certainly one cannot term this upmove as the end of bear phase. Unless, Nifty crosses 3650, the markets would continue to be in bear trend and investors should use any rise to sell.

3200 is the first resistance and if momentum breaks this, then Nifty may come close to 3650. But this looks less likely.

Midcap stocks should be avoided as for the next one year action will remain in frontline Stocks.

Gold

Gold has a very strong resistance between $780 to $810. On the downside, there is no meaningful support prior to $650 hence the downside risk remains very significant.

Investors can go long in gold only once it crosses $810 on the upside.

Currency

The rupee gained against dollar last week. Momentum indicators have turned negative for the dollar. However, it has very strong support at 47.07. If it breaks this level, then it can come down to 45.

But looking at the structure, it looks less likely that dollar will come below 47.

Source: ndtvprofit