Wednesday, May 6, 2015

NIFTY OUTLOOK FOR THURSDAY 7 MAY 2015

The markets today witnessed huge sell off on the back of technical and sentimental reasons. The Nifty broke its 200 DMA at 8271 and the lack of any major triggers in both global and domestic front affected the sentiments negatively. All the sectors ended in red. The benchmark index Sensex tumbled 722 points, closed the day at 26717. The Nifty index also slid 227 points at 8097.
This seems to indicate that the bulls do not have much confidence in the rally of last Monday when the Nifty scored a 150-point gain. This is not a very happy scenario this only exposes the chinks the bullish armor, which is already fairly apparent by the poor volume activity while the market went up in Monday.
For tomorrow, the critical Nifty levels are located between 8145 and 8010—once the bears are able to sustain it below this range, it could turn quite problematic for the bulls. Going further down, once the index breach 8070 further weakness would surface. On the upside, unless 8200 is decisively taken out do not expect any sustainable rally while any failure swing would induce short sellers to press sales again.
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RESISTANCE: 8150, 8200, 8250
SUPPORT:  8100, 8050, 8000

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