Yesterday even before the opening bell we wrote “Today the expiry of the near term F&O market adds critical dimension to the current situation of the equity market. Right now bulls should not stay away from the market.”

If you look at the way the in which Nifty moved up you would clearly agree that wealthbull Newsletter readers enjoy the market both in bull and bear phase. In fact, when the market turned back from its high we clearly indicated that 5500-5600 would offer a very significant support range for the Nifty. While the media people confused about the Indian market yet again we managed to point out the turning point.

Yet another success came from Gold. Yesterday Gold touched a low of $1179. just a couple of days back we informed  that the technical short-selling in the futures markets is putting lots of pressure on Gold and our target of 1180 may be achieved in the days to come!  Right now it is better to avoid further shorts in Gold  as it has gone down sharply in the past 3 months.  Though a further drop is expected, we should play safe now as a technical bounce is expected to fill in the gaps, which exists at higher levels.

The same thing holds good for Nifty. A gap exists at higher level may be filled now. Till it fills we should consider the bounce as a technical pull back and only when it crosses and closes above 5775 we would be bullish.