Sunday, June 1, 2008

THE MONTH GONE BY & THE ROAD AHEAD

The month of May saw the Nifty losing 295 points to close at 4870.

Sector wise performance was as follows:

As you can see a lot of pain has been endured by Real Estate and Banking sector investors. Except for IT, Metals and Health-care all other sectors are down.

So whats in store for us going forward. I am a person who does not preempt the market nor do I have the wisdom to predict how the market will perform. I am a follower of the market -UP or DOWN. Resistance and Support Levles are the backbone of my Trading System. Nifty is definitely trading below the six months retracement level of 5177. Hence any up-move from the present downtrend will happen only if Nifty trades and closes above 5177. Until then every rise to 5177 levels is a sell. Having said that when we look at the charts the trend-lines tell us that there is resistance at 4950 and 5050 levels. Support is at 4733. If Nifty trades below 4733 then we will see 4450 immediately. Above 5050 I could not find any resistance trend lines.

Hopefully since the daily charts show oversold we will see a retracement to the monthly level of 4199 before Nifty starts on its downward journey.

NIFTY SPOT LEVELS

PIVOT-5122

RESISTANCE- 5311,5429

SUPPORT- 4932, 4814, 4625, 4435

TRADING STRATEGY FOR JUNE

REMAIN SHORT BELOW 5000 AND LONG ABOVE 5181

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