Is the market breaking this trading range soon?

Markets ended with more than 1 percent gains today. Is this the beginning of a sustained up move which will finally take us beyond the range in which we have been confined since last October. The answer probably is no, not yet. The advance tax numbers so far are on expected lines and point to a sustained industrial growth. However, most of this was expected and has already been factored in the prices. Market is quite likely to remain in a broad range (4700 to 5400 levels of Nifty) for a couple of months more as valuations are a bit expensive and will create supply pressure on the higher side from the current levels. On the other hand, there is enough liquidity chasing stocks of emerging economies, especially India and will prevent any major crash from happening. By the end of Q1 of next financial year markets will start looking beyond FY11 and then if the growth momentum is still strong and monsoon are normal this year; we have a strong chance of breaking past this range to higher levels. Hence, we advise investors to stay invested and use declines to buy more. Overall trend remains positive and sectors to bet on are banking, IT, Capital goods and automobiles.  

However in the immediate future we are unlikely to go significantly higher than 5300 on the Nifty.