Correction is must now.

After BSE Sensex yesterday, today it was Nifty's turn to have a life time high closing.

This is for the second time in past one month that the Sensex is facing resistance at 7350 levels. Resistance at 7350 is too high and sensex may not be able to break out even this time. If sensex closes above 7350 tomorrow the it may pass 7450 by next weekend. But if the closing is below 7350 tomorrow then long due correction will start. This correction may take sensex to around 7100-7150 in levels few session or even lower.

Post correction fresh rally will take sensex to 7500+ level. Partial profit booking is advised in all profit making positions. Start buying on dip below 7200.

Again after a long time.

I have not been blogging on Prakash's World regularly now a days, but this does not mean that I have stoped monitoring markets.

Since my last bolg on 26th May 2005 BSE sensex has jumped from 6670 to 7347.

Last week Infosys declared results that where above there guidelines and below market expectation and the market reacted negatively. It seamed as if long awaited correction has started, but India story does not seam to stop here.

After some correction over last week, today sensex rallied by 75 points and hit a life time closing high. Today’s jump was on back of strong numbers posted by TCS. TCS numbers had a positive impact on Infosys also. Positive news from TCS impacting Infosys positively is indication of changing market condition. Which may be more clear in months to come. Within a year of listing TCS, India’s largest IT service provider has today shown that it has the power to drive the market.

For years now Infosys results have driven market sentiments and today TCS results has helped Infy regain its losses after Infosys results where declared on 12th this month. Next few Quarter will decide who is the real driver of the market TCS / Infosys.

From todays blog I am againg starting with my recomadation.

Pick for today MTZ polyfilms

Buy MTZ polyfilms @ 8.25 / 8.50 --> 8/10 Weeks view.