MUMBAI: Nifty has been in an upmove for the past two weeks and Thursday it crossed the strong resistance of 3200. According to Sudhanshu Pandey, technical analyst at LKP Shares, the 50-share NSE index is likely to break out and touch 3450-3650 in next two months.

“The Nifty rally from its March ’09 low of 2539 was able to break the erstwhile tough resistance at 2800-2880 levels quite effortlessly towards the end of that month. This is a very positive surprise. Trading volumes are much better during this rally. The number of stocks that have participated in the rally is significantly higher. We have now witnessed a strong rally in terms of momentum, volume and breadth (across sectors). Surely this is an excellent development,” Pandey says.

“Nifty is poised to make a strong bullish breakout from the sideways trading range of the past five months. Today Nifty is expected to complete a bullish breakout by closing above 3150 end of day. On the lower side, Nifty has very strong support at 2800 now. I expect the rally to continue and take Nifty to the next resistance zone near 3450-3650 within a two month period,” he adds.

The sectors he is bullish from a medium term perspective are auto, oil&gas, metals and IT.

“Most bank stocks are still caught up in a sideways trading range. However, with each passing day the number of stocks participating in the rally is increasing consistently. In my opinion any minor dips during next few weeks should be viewed as buying opportunities for short term and medium term,” he says

Tags: bank, bse, nifty, nse, sensex

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