Every time Nifty has touched oversold levels since 4500 it has made similar lows or in the range + or – 100 points.
So in that case it should be 5550-5750 to be watched out for.
Mind you this can happen over 3-6 weeks.
Investors should now be looking towards strong accumulation in next 1-2 months with a view to only buy on dips.
This might be an opportunity similar to previous times and a reversal now will be above 5970. We will keep a watch.
Stocks to buy – ONGC at 280-300 , BPCL at 260-380 , CIpla at 360-380 and Reliance / MNM in large caps.