"WEEKLY MARKET OUTLOOK & TRADING IDEA FOR THE WEEK 28.05.2012 TO 03.06.2012"

The 30-share index, Sensex gained 65.07 points, or 0.4% to 16,217.82 for the week ended May. 25, 2012. On the other hand, the broad based NSE Nifty added 28.95 points, or 0.59%, to 4,920.4 during the week.
VIEWS FROM DIFFERENT BROKING HOUSES:
HDFC SECURITIES: Though the Nifty has bounced back this week, it is yet to cross the crucial 4956 trend reversal levels. A convincing move above these levels in the coming week would lead to a fresh uptrend. A failure to close above these levels would lead to a continuation of the downtrend”.
CANARA BANK SECURITIES (CanMoney):The 50-share Nifty closed above 4920 level and its crucial 9 and 14-DMA in last week. Overall, a short covering in Future and Options may trigger a rise by another 100 points in Nifty. Option data is indicating resistance in 5000-5100 zone and support in 4800-4700 zones”.
FAIRWEALTH SECURITIES: “In the next session, Nifty is expected to trade in the range 4860-4960. If moved above this range it may test 4990 and 5035, while 4800 may act as crucial support level for the next session. Bank Nifty may future has strong support at 9130, below this level it may face severe selling pressure. 9561 and 9670 may act as resistance level for the coming session”.             
BONANZA ONLINE: Nifty opened the week at 4888.50 levels and high volatility was seen as Nifty traded in range of 4800-4955. Nifty made a high of 4956.35 levels and made a low of 4803.95 levels and closed in green at 4920.40 levels with 0.59% gain. Volumes were lower than previous week. Nifty is facing resistance in range 4900-4950 and showing support from lower levels in range 4780-4800 level. Nifty trend is bearish as it is trading below 20-DMA of 4994. If Nifty holds 4900 levels then recovery may be seen. For trading during the coming sessions, trend deciding level is 4950. If Nifty shows strength above 4950 levels then we may see rally till 4975/5050/5125. If Nifty doesn’t sustain above 4950 levels then selling pressure till 4840/4790/4750/4700 may also be seen”.
Duration
Action
Entry Zone (NF)
For Target of
Stop Loss
For Monday
Buy
4880-4900
4950
4860
For the Week
Buy
4870-4900
4975-5005
4840
BONANZA PORTFOLIO (Rakesh Goel):Global developments continue to influence the market sentiments. The recent price hike in petrol and the forthcoming outcome of the Empowered Group of Ministers meeting which will discuss hike in diesel and cooking gas prices have made the sentiments jittery. The outcome of the meeting is likely to influence the short term trend of the market. Immediate upside resistance exists at 4,950”.
VENTURA SECURITIES LIMITED:On Monday (4918-4907-4898) would be sell levels. Strong Markets won’t cross 4912. Above 4918 Nifty could test 4935 (Friday’s high), further it could open for 4956-5000-5065-5131-5222. Nifty has support at 4889 (Friday’s low). Below it could open for 4870-4854-4831-4802-4788-4768-4531”.
GEPL CAPITAL: Nifty is now trading near the level of 4,960 which is an important resistance. Should it breach the level of 4,960 we may expect a swift upside till 5,050 to 5,100 in a very short span of time. It now has support placed at 4,800. As long as it maintains this support the chances of an upside till 5,100 remains high. In the event it is unable to sustain above 4,800 then we may see further downside till 4,700 and lower. However there are some encouraging signs on the charts which indicate that it is likely to trend higher in coming few days”.
KARVY STOCK BROKING: Long positions can be assumed in BFSI, metals, pharma, consumer durables and software if markets hold 4,800 levels. Short positions can be assumed in automobiles, infrastructure, energy and utilities if the Index fails to sustain above 5,000 levels or below 4,800 levels. Overall, we expect the Nifty to trade in a broad range of 4,800-5,000 levels next week”. 
GEOJIT BNP PARIBAS FINANCIAL SERVICES (Alex Mathews): Nifty is having resistance at 4,941, 4,972 and 4,999 while the support is there at 4,894 and 4,868 levels”.
ADITYA BIRLA MONEY (MONEY WEEKLY):Technically, market looks oversold and pullback rally is very much on cards in the very short term. In the medium term, fundamentals of domestic and international economy look fragile. India would benefit from the slide in commodities once the risk off is off the table. We recommend investors to stick to quality stock with healthy cash flow and low gearing”.
ICICI SECURITIES:We expect 4950/4980 to continue to act as a stiff resistance. Only a sustained move above these levels may trigger short covering in the broader index. We expect the Nifty to trade in the range of 4850-5050 amid high volatility. Highest Put base at the 9000 Put strike acted as strong support for the Bank Nifty and it closed near its crucial resistance of 9450.  Sustainability above 9450 may trigger further upsides towards 9700. On the other hand, the Bank Nifty may remain in the range of 9000-9450”.
SMC TRADEONLINE (WISE MONEY):The put-call ratio of open interest closed at 0.94 levels which indicate call writing. Options open interest concentration has shifted to the 5000 and 5100-strike call with the highest open interest of above 70 lakh & 66Lakh shares. Among the put options, the 4700-strike put option has the total open interest of more than 90 lakh shares which is the highest open interest among all options. Based on Nifty option concentration Nifty is expected to expire in the range of 5000 to 4700”.            
PINC RESEARCH (PINCTREND): The Nifty has remained under pressure for the last few weeks with dull volume. Its short term and the medium term indicators are also well into the oversold territory. This means the chances of the Nifty to stage a pull back towards 5200-5300 is plausible over the short term”.
GABA & GABA FINANCIAL ADVISORS PVT LTD (Prakash Gaba): Technically the market is still looks weak and seems to be in pause mode...we can say that we could see some upside to maybe around 4992-5034 zones but if 4800 goes then down move continues. Still looks like a sideways zone. From a trading point of view I would trade long as long as 4875 holds”. 
ANGEL BROKING (Technical): We are now observing a positive crossover in daily 'RSI-Smoothened' oscillator in the oversold territory. This indicates loss of negative momentum and high probability of a bounce. The weekly chart depicts two 'Bullish Hammer' Japanese candlestick patterns next to each other. These patterns have formed near the 78.6% Fibonacci Retracement level of the rise from 15135/4531 (Low on December 23, 2011) to 18524/5630 (High on February 22, 2012). Therefore, these patterns hold immense significance. The said patterns will be confirmed once indices sustain above the high of 16391/4957. In this scenario, indices are likely to move towards 16700-16840/5050-5090 levels, which coincide with the '200-day SMA". Conversely, we continue to maintain our view that the last Friday's low of 15809/4789 is likely to act as a decent support in coming trading sessions. A violation of this level would clearly increase the chances of a further fall and, as a result indices may slide towards 15678/4695 level”.
MICROSEC SECURITIES:For the coming week, first support of Nifty is at 4880 and the resistance is 4960. If Nifty breaks 4880, it may further go down to 4790 and then 4720. However, if Nifty is able to sustain above 4960, the level of 5040-5130 would become the next target”.
INDIRATRADE SECURITIES:For the next week, Nifty likely to trade in the range between 5100-5150 in the upper side and 4750-4700 in the lower side”.
SWASTIKA INVESTMART:In coming session 4955 is the key resistance level for the nifty; if nifty manages to cross this level significantly then we might see a short term uptrend where 5040 will be the immediate resistance level, while if nifty surrenders 4900 then 4850/4820 will be the support levels”.
INVENTURE GROWTH & SECURITIES: The Nifty need to close above 4,960 levels in order to decisively confirm higher tops and higher bottoms on the daily charts. Once this is seen, a near term bullish trend reversal would be in place and Nifty could head higher to 5,080 levels. On the downside, 4,767 would act as key support level”.
MAGNUM RESEARCH: “On the Nifty 4800 mark will have a strong support closing below which Major trend will turn negative and selling pressure till 4630 levels could be witnessed. On upside, 4970 will act as immediate resistance, sustaining above which the next level would be 5080 level”.

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