DAILY REPORT FOR 6 MAY, 2008
NIFTY (5192 -36 pts)
Supp 5150/5075/5040 Res 5230/5265/5320
SENSEX (17490 -110 pts)
Supp 17425/17240/16980 Res 17570/17650/17870
Outlook for 6 May, 2008:-
For now we are consolidating nicely above 5150 and fall below that level can give way to some correction. It should be a healthy correction especially after one and half month of a rally.
Any dip towards 5040 to 5070 should be regarded as healthy and after that we can once again look forward to higher levels. But it is better to remain in 50% cash levels as we should never assume the uptrend to continue. One would do well taking a small loss in scrips which are not moving as per one's wishes. Many times it is better to exit at a small loss than to keep on averaging later.
For today's trading, markets are expected to open negative. 200 DMA around 5150 should provide good support but below that we can see more correction. Resistance stands at 5260 and 5300. Leverage through Derivatives and margin should be avoided. It is better to stay in good scrips where one is confident enough of the target.
CAIRN(255) is looking good to target 295-300 levels. Buy with SL 238
Disclaimer: These recommendations are based on the theory of technical analysis and personal observations. This does not claim for profit. I am not responsible for any losses made by traders. It is only the outlook of the market with reference to its previous performance. You are advised to take your position with your sense and judgment. I am trying to consider the fundamental validity of stocks as far as possible, but demand and supply affects it with vision variations.