Mkt pullback enters day 3, experts see trend continuing

The pullback rally continued for the third straight session and the markets clocked another steady session with no signs of volatility. The Nifty closed above the 5,050 mark at 5,066, up 63 points. The Sensex shut shop at 16,863, up 196 points. For the week, both the Sensex and Nifty clocked in gains of over 2.5% each.
The markets have recovered well in the last few sessions and analysts seem positive that this trend will continue.
Mitesh Thacker, Technical Analyst, miteshthacker.com, expects the Nifty to touch 5,150-5,200 in the short-term. "There are a lot of supply areas in that 50 points range. Looking at the action of last two-three days and looking at the fact that we are still far away from giving any kind of weakness or weak signals on intraday chart, I think over the next two-three days we will test those levels." However, he is unsure where the broader trend is going because as of now there is still no clear indications on that.
Similarly, Dipan Mehta, Member, BSE and NSE, sees the Nifty trading in 5,000-5,300 or may be 5,100-5,400 range going forward. "The pull back has been quite phenomenal and fortunately it’s been across the globe. We are also seeing a decent amount of rebound in European stocks. Today, we are seeing decent amount of institutional buying coming in as well. Some of the HNIs, who have been waiting in the sidelines, also seem to be putting their money to work. What we need is may be a few more trading sessions of calmness in overseas markets and may be our markets will trade in that 5,000-5,300, may be 5,100-5,400 range."
Going forward, he said the rally will depend on the monsoons. "That’s a big question mark and the answer to that would be known only in first week or may be in the middle of July. So, expect the markets to remain rangebound till then. Thereafter, depending on the progress of the monsoon, we could see this range being broken either on the upside or downside."
According to him, the Nifty could slip below 4,500 levels if the crisis in the EU economies worsens or there is a poor monsoon.