GLOBAL DEVELOPMENTS LIKELY TO SPOOK THE MARKETS::ANAGRAM
On weekly basis NIFTY gained 69 points and closed 1.36% higher at 5,135.50, SENSEX on weekly basis gained about 255 points and closed 1.51% higher at 17,117. This was second successive weekly gains for our markets. Easing FIIs ‘selling’ and robust domestic economic data helped markets to extend gains for 2nd week in succession. Strong auto and Cement sales in May 2010 and robust GDP growth data for Q4 March 2010 boosted the sentiments in markets. Recovery in global Equity markets too aided the on-going rally. FII's 'pull-out' slowed last week. There's possibility of Liquidity crunch in the 1st fortnight of June due to payments for Corporate Advance Tax and License fees for 3G spectrum. This could have mild impact on markets. On the positive side, India's economy grew at 8.6% in the March 2010 quarter driven by robust manufacturing sector on the back of government and consumer spending. Global cues are likely to be at center stage and will decide the trend in equity markets in the coming week. Global Equity markets plunged massively on Friday, post closing of our markets. Reflection of the same is likely in our markets when we open for trade on Monday. The government will unveil industrial production data for April 2010 on 11 June 2010. The progress of the monsoon will be keenly watched.
STAY LONG WITH THE STOP LOSS OF 4961 :: ANAGRAM TECHNICAL TALK
The view on the market continues to remain bullish as higher-top higher-bottom formation is well intact. Any decline should be seen as a buying opportunity until this formation is not violated. And this formation will be violated only when Nifty breaks and sustains below the previous bottom of 4961.
WEEKLY REPORT FROM FAIRWEALTH SECURITIES PVT. LTD. ::
Nifty went past the resistance level of 5105 to test resistance level of 5150 & closed at 5133. Nifty has completed its pull back rally in the intermediate downtrend & its likely to test again levels of around 5005-4930-4807. So Sell on every rise & any view on intermediate trend changes only if Nifty closes above 5215 on weekly basis.
IN MY VIEW, WHAT I HAVE ALREADY WRITTEN ON FRIDAY'S TRADING IDEA, IF NIFTY FUTURE ABLE TO CROSS 5137 WITH VOLUMES AND HOLD THE SAME FOR ATLEAST THREE DAYS , GO LONG FOR A TARGET 5224/5300/5368 AND IF NIFTY FUTURE TRADES BELOW 5097 WITH VOLUMES GO SHORT FOR A TARGET 5044/5011/4980.
HOWEVER, FROM GLOBAL CUES, & SGX NIFTY, IT SEEMS THAT NIFTY WILL OPEN A BIG GAP DOWN (LIKELY TO BE AROUND 5048-5050 AREA) ON MONDAY.
Disclaimer: I have some short position in Nifty. I may have some vested interest on the above mentioned reports. I may have exit from my short on Monday itself. Intraday trading is very risky. Traders/Investors are advised to trade as per their own risk taking apetite.
I will post all calls for OPTION TRADING in the other blog "Jayfromstockmarketsinindia.blogspot.com" in advance as well as during trading hours. This blog is free but only on invitation basis.
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