On Friday(23-4-10)Nifty opened at 5300 with a gain of 31 points, moved in the range 5274 - 5311 and closed at 5304 with a gain of 35 points. In another words, Nifty closed around the opening level of the day. Friday closing is above the centre of Sudha Madhyamam (5286) indicating a little bit up move still possible. Even at 5304 Nifty PE Ratio is 23.03. Except in 2000 and 2008 correction took place when PE Ratio was in the range 23 to 24. That means it may be in the range 5300 - 5500 this time. Another observation is that correction may be in April/May period (see Nifty Montly chart below - prepared by Abhayji[nearby light houses link3]in 2008). So avoid going long and watch for sell signal ie. Nifty closes below the Agni level. One can buy/hold mid&small cap stocks that have not doubled from Feb/Mar 2009 level. Tomorrow's Agni level is at 5280.
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