Fresh Rally Likely Above 7,750
What is in Store? Nifty if starts to correct below 7580 would confirm the completion of the one-month rally, as we have been correcting from 9119 from March 2015 we are entering into 13th month were selling pressure would be high if 7405 selling in mid-cap and small-cap would be very high. What Could Investors Do: Exit metal & banks after spectacular rally from low levels and auto, FMCG, power and fertilizer which can be defensive, we like Ramco Cements, Infosys, Hero MotoCorp, NBCC, Ambuja Cement, GSFC, Coromandel International, UPL. Avoid high beta companies as in next wave of correction if Nifty goes below 6825 these stocks can lose value and will take very long time for recovery. We expected 78007900 for this rally to terminate but evidence is showing it can happen before.