WEEKLY RESISTANCE FOR NIFTY: 11900, 12000, 12200
PIVOT POINT: 11800
WEEKLY SUPPORT FOR NIFTY: 11700, 11600,
11500
WEEKLY CHART FOR NIFTY
DAILY RESISTANCE FOR NIFTY: 11900, 11950, 12000
PIVOT POINT: 11850
DAILY SUPPORT FOR NIFTY: 11800, 11750, 11700
DAILY CHART FOR NIFTY
Bulls have shown
tremendous strength on the long-awaited exit polls, despite the ongoing
ambiguity in the US-China trade talks. With the last phase of elections
scheduled for Sunday, the all-round buying across the sectors reflects market's
anticipation that exit polls may indicate formation of a stable government. Monday
was all about the result of exit polls over the weekend. With almost all polls
indicating NDA government back in power with thumping majority, the market
overjoyed with this and had a massive bump up at the opening well above the
11600 mark,. In the initial hour, there was mild profit taking seen; but
eventually this got bought into and index went on register colossal rally of
over three and half a percent to the previous close. Monday’s colossal rally was followed by a gap
up opening at new record highs on Tuesday. During the first half, index
consolidated in a range; but second half turned out to be a disappointing one
as we saw broad based sell off till the closing trade of the session. In this
process, index shaved off precisely a percent from Monday’s massive upsurge. Wednesday,
markets opened slightly higher as indicated by the Nifty early in the morning.
Subsequently, index consolidated in a range of nearly 100 points throughout the
day to eventually close with one fourth of percent gains. On the sectoral
front, two heavyweight pockets, Banking and IT had diverging moves. The banking
index saw decent pull back; whereas the IT index continues to underperform. Thursday,
since morning, all eyes were on election counting and right from the word go,
the BJP led NDA had taken a head start. As a result, we had a massive gap up
opening tad above the 11900 mark. As the counting progressed, this early
morning lead got extended to go beyond the magical figure of 12000. However, all
of a sudden, we saw index taking a complete nosedive after clocking new highs,
in fact the profit taking was so immense, we not only wipe off all gains but
also went on to sneak well inside the negative territory. Friday market ended
near day's high level on May 24 after BJP led NDA government got clear mandate
in the Lok Sabha Election 2019. At close, the Sensex was up 623 points at 39434, while Nifty was up 187
points at 11844.
NIFTY: A STRONG SUPPORT WILL BE @ 11200; STRONG RESISTANCE LEVEL SEEN @11500
Expiry
is ahead in the coming week. We must accept the fact, the forthcoming session
is likely to see roller coaster rides and the overall trading range would
probably be considerably higher than average range. Momentum traders are
advised to stay light and would be necessary to remain flexible in case of any adverse
reaction. Last week we had clearly stated about this space which is in a last
phase of time as well as price correction. We have already seen a good leap
from lows and expect further legs to unfold, which will eventually bring back
the wider smile on many traders’/ investors’ faces. Historically, the stock
market associates the month of May with Bearishness. This time too, it is
playing out in a similar fashion as the Bears have started taking command. The
old adage “Sell in May & Go on a Vacation” holds particularly true, as the
market seems ready to test lower levels going forward. The short term trend has
turned negative this week, as now every rally is being sold into, with 20dma
and 200dma providing strong Resistances. The Bulls have a flicker of hope as
the market has taken support at the Bullish Gap 11750-11650 and closed within
it.
TECHNICALLY SPEAKING.
