Market Outlook

Posted By : Kishore B.S

Weekly Technical Report.

HIGHLIGHTS
 NIFTY closed 2.4% HIGHER on the third week of May broke out above 8310 forming bullish inverse H & Pattern
 This week NIFTY saw steady up move on the verge of short covering in selective stocks in Pharma, Banks and IT
 US markets in a strong uptrend and Asian markets outperformed Indian markets over the week
 Foreign Institutional Investors (FIIs) selling fizzled out with supportive domestic (DII) buying took the index higher
 Technical NIFTY has formed the inverse H & Pattern with potential pattern targets 8644 possible ahead for NIFTY
 NIFTY has hurdles around 8465/ 8525 on upside and on the downside support zone to be around 8420/8340
 The mantra would be wait and trade accordingly for minor moves until clarity emerges in the major trend as it a corrective move up one should chip in with profits accordingly
 The key triggers to drive the markets for the forthcoming week would be Modi Government completing 1 year term in power, Parliamentary reforms and Global market trends

MAY4 2015

NIFTY
TECHNICAL VIEW – BUY ON DIPS* (CMP = 8458)
*THIS TRADE IDEA IS BASED ON TECHNICALS ONLY NOT SUPPORTED BY FUNDAMENTAL RESEARCH*

MAY5 2015

Observations*
 NIFTY after making a bottom near 7997 has for formed a bullish inverse H & S pattern breaking the neckline above 8310
 NIFTY has trading above the crucial resistance zone of 8340 and 8420 now could act as support zone
 The F & O expiry week to add volatility in the markets
 Thus, NIFTY is the Buy zone any dips can be used to buy around 8340 – 8375 with the stop loss of 8260 for targets of 8509 – 8525 above pattern targets of 8644
 Until 8280 hold one can be bullish on the markets
The key support & Resistance zone for NIFTY :
S – 8420/ 8340 – 8332/ 8262/ 8214
R – 8525(Cluster) / 8644 / 8699

Trade Setup 1:
Buy on dips around 8340 – 8375 (CMP = 8459.95) with stop loss of 8262 for targets of 8525 above 8530 can head towards 8644

Mantra for the Week:
We recommend being more on selective large cap stocks.
Range for the Week:
NIFTY can be in the range around 8260 – 8550
Calls for the Week:

*THESE TRADE IDEA IS BASED ON TECHNICALS ONLY NOT SUPPORTED BY FUNDAMENTAL RESEARCH*

MAY6 2015

Cheers!!
Team SMI
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www.stockmarketinstitute.org

(Inputs: Mr. Raju Angadi Vishwanath, Facutly – TA, Stock Market Institute, Bangalore India)

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