DAILY REPORT FOR 7 MAY, 2008
NIFTY (5144 -48 pts)
Supp 5110/5075/5040 Res 5190/5235/5270
SENSEX (17373 -117 pts)
Supp 17240/16980/16870 Res 17480/17600/17770
Outlook for 7 May, 2008:-
We have closed below 200 SMA both for the Nifty (5171) and the Sensex (17445). But sometimes the market may show resilience as it is a very important level. So we may see up-down movement at current levels. Reliance Industries holds the key as the stock can easily target 2780 once it is above 2700. Tech stocks came to the rescue yesterday as dollar appreciated towards Rs 41.
For today's trading day, Nifty is expected to retrace towards 5200-5230 but break of yesterday low at 5110 should be negative and we can test support at 5075 and 5040 quickly.
We have seen a rally of more than 3000 points on the Sensex and this can be a decisive time for further trend. Because it looks as a pullback rally so far, we should not be too aggressive at current levels. Avoid leverage and buy only in cash. It is better to be light on quantity while entering new scrips.
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.