Index Hits Upper Channel On Monthly Chart; Time To Take Profits

Indecision continued to reign supreme on the bourses last week, with the NIFTY rising 100 odd points on an aggregate basis, but not before feeling a massive mid-week jolt on the 25th.

Those who are justifying the current liquidity fuelled rally by pointing to improving fundamentals and economic indicators may well be forgetting that a solid recovery could well be factored into current prices!

On the technical front, the index formed a Doji Star of sorts, clearly underscoring the fact that we are now in a trendless market that is difficult, if not impossible, to trade.

The chances of a profit booking downtrend remain high, with 12,600 being the next support level and 12,000 being the level 2 support.

Bear in mind that we continue to be in a buy on dips market, and large retracements should be used as entry opportunities, not the other way around.

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