The Nifty on Monday will see a gap down opening. This is a surety. The effect of US market fading on Friday and the strong yen will see the Japanese markets along with the Australian markets going down. The Chinese and the Hong Kong Index will also see a fall. The play by yuan will set the trend for the Asian currencies, the Rupee could open stronger if the flows last Friday were any indication, if we see three closing below 60.80 then we can see it going towards 61.80.However,we could see some more inflows, from exporters who would take the closing on Friday as the trend for the week and cash out quickly.The rupee has all the ingredients for an appreciation.Would not be surprised if we see it crossing 60 mark into the 59 zone before the 10/12th May and then hover around till the elections.
This would mean that if the Nifty touches the 6740 - 6435 levels ( if the nifty trades below 6780 for 15 to 20 minutes or more) then only, it will reverse and then head towards the new highs once again, but this is dependent on where the rupee is heading to and what are the general quarterly result trend set for the market.So far the banks have been doing better than last quarter and this trend should continue.
If the Nifty slips below 6735 ( Hanging man and inverted Hammer on the closing charts gives rise to this thought) and head lower then we could see levels like 6622 where it should bottom out from...if the bulls do manage to take it up from 6735 level, then we could see it go up to 6920 level where the resistance is at the maximum.It would either pause or reverse yet again....however if the time line is nearer to the election result date, we could see a pause and then the election result outcome would dictate the trend, other wise it will fall steeply towards the 6622 level or even more.
These are volatile times and best to trade in low quantities and be safe , not to get carried away with the swings and not be involved deeply.Trade safe is the key.
This would mean that if the Nifty touches the 6740 - 6435 levels ( if the nifty trades below 6780 for 15 to 20 minutes or more) then only, it will reverse and then head towards the new highs once again, but this is dependent on where the rupee is heading to and what are the general quarterly result trend set for the market.So far the banks have been doing better than last quarter and this trend should continue.
If the Nifty slips below 6735 ( Hanging man and inverted Hammer on the closing charts gives rise to this thought) and head lower then we could see levels like 6622 where it should bottom out from...if the bulls do manage to take it up from 6735 level, then we could see it go up to 6920 level where the resistance is at the maximum.It would either pause or reverse yet again....however if the time line is nearer to the election result date, we could see a pause and then the election result outcome would dictate the trend, other wise it will fall steeply towards the 6622 level or even more.
These are volatile times and best to trade in low quantities and be safe , not to get carried away with the swings and not be involved deeply.Trade safe is the key.