3 May 2014

NIFTY OUTLOOK FOR MONDAY 05-MAY-2014

"Sell LT Future Below 1270 TGT 1262/1258 SL 1278"
"Buy Reliance 1120 Call @ 14 TGT 21/25 SL  7 "
NIFTY FUTURE OUTLOOK FOR MONDAY
On Friday nifty was completely range bound it started with 6750 made a high of 6778 and low of 6720 and closed at the level of 6726…nifty played 58 points throughout the day. The index swooped down to test levels close to 6650 but closed much higher. However, an interesting thing happened on the end-of-day  the Nifty and the Bank Nifty both We found a wide ranging day pattern showing a large intraday range with the opening and closing around the middle of the range…the market has become directionless. This means the vicious downswing of the last four sessions has probably come to an end. Either there will be a narrow range bound movement before another directional movement is noticed or a sharp spike up in order to mark the resumption of the earlier intermediate uptrend. However, so long as we don’t see the index getting past 6750 it would not be out of the woods.for Monday we are expecting that nifty will touch the level of 6740-6770.at the other side if nifty will slips down then the 6700 will be proved as a very good supporting level. The last two phases of the extended general elections will take place over the next 10 days.
Despite several polls predicting an NDA victory, stock market activity has slowed down as investors are not too sure of the election outcome.That hasn't prevented a few stocks from going through the roof during the week. Quarterly results are being announced thick and fast. Most company announces result so far have been either along expected lines or below expectations. Their stocks have faced bear pressure. A few companies have provided positive surprises. Their stocks have received immediate buying attention. Remember that news-based buying or selling doesn't last long – unless the news is great or really bad. So, don’t get sucked into a bull or bear trap unwittingly...
RESISTANCE: 6,760, 6,780, 6,800
SUPPORT:  6,740, 6,720, 6,700

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