The market closed in the negative last week losing over 400 points (more than 2%) on BSE Sensex and settling below the psychological mark of 18K. The Nifty too closed the week down by 122 points or 2.2 % at 5408. Fears of slowdown in the global economy and in the absence of any positive trigger on home front caused the market to loose on three out of the five sessions in the last week. The market may primarily take cues from the global markets and move accordingly. The GDP data for the April–June 2010 quarter, to be released on Tuesday, will also provide some direction to the market. Further, sales and dispatch figures from the automobile and cement manufacturers will also provide some cues for the market’s direction this week and stocks from these sectors may react accordingly.
This week Nifty may remain in the range of 5344-5489, break above it may move further to 5515/5547, or else break below the same, may slide further to 5313/5298. If it trades and remains above 5444 whereby it may move up to 5462/5481. Strong support for the Nifty exists at 5396 which if breached decisively with volumes then it may slide to 5370/5347.
FOR TODAY: The support at the 5450–5460 failed and attracted sudden selling on last Friday. Nifty futures have also closed just above it’s support from the 50 day moving average. The Nifty and it’s derivative have been trading above this support level for the past two and a half months. Therefore, futures may retest the 5450 – 5460 resistance today. If it is able to trade above this level, it may again try to test the 4590 resistance. As the US markets have recovered last Friday on the back of Fed Chairman’s positive statements, the chance of the Nifty futures retesting the resistances have risen.
All markets were up. Asian markets are in GREEN. SGX Nifty is trading around 5451, up 47 points. Surely NIfty will open a gap up and will try to trade above 5450 level.
My view is if it not able to trade above 5450 for 5-10 minutes, SELL ON RISE.
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