Hi Friends,

Markets are following the Golden rule of Sell the Rumors,Buy the News.Yesterday markets reacted positively to the news of CRR hike and the fiscal policy of duty cuts on steel companies.One concern this time in the recovery rally is that the fundamentals dont support a runaway rally in most stocks,Ex-OIL&GAS.Majority of non oil and gas companies have reported lack luster growth.Capital goods companies have seen one of there worst quarters in last 3 years.Most of the companies have been hit by higher input costs.We saw the same concept being seen from Siemens,bhel,Abb nd yesterday alsthom power.

Coming back to Nifty next resistance for markets is now at 5227.Above 5227 in spot there is only one visible resistance level of 5281.Bears reside below 200dma and Bulls above that is another golden rule.But do remember its time to be cautious and not overly optimistic as Bear markets rally are strong but fall is stronger.