Nifty Support and Resistance For May

Nifty : 5228
Maximum Target for May: 5358
Support : 4978

Positive Point :

1)US Stock Market Rallies and Down Touches 13000
2)Yen Trading firm at 105.50/Dollar
3)Rupee Weakening agains dollar currently at 40.44 good for I.T Stocks
4)Recent Crash in commodities like gold ,silver, aluminium..etc

Negative Point:

1)Inflation at All time high at 7.57%. This may weaken Banking stocks a bit
2)Profit booking may happen in nifty stocks as there is rally of 600 pts in last 15 days alone

 

3 Month Chart

Nifty Stratergy
Nifty Traders are requested not to go for calls at current situation as RSI levels
are just near to the oversold situation. And peoples those who are holding calls are
requested to square of their holdings at higher levels. Our Nifty Maximum target remains at 5358.

One can short nifty at 5300 levels or 5338 levels for a target of 5128 and 5056 with a stop loss of 5386.And 4978 remains the great support for Nifty.

For Investors
Investors are recommended to use even a small dips to buy their stocks.Till now no panic signals are seen. And There is a small gap near 4990 which remain notclosed. If nifty reaches this point this this a huge oppurtunity to enter your favorite stocks.

Short Term Investors or requested to stick to I.T related stocks and to stay away from banking sectors till Inflation concers are over.

Regards,
Rajandran R
Author – Marketcalls