Again the month of May (even years) saw the markets close deep inred. The Bulls failed to overcome the “May fear” losing around 400points in the last fortnight. Market sentiment appeared weak onrise in inflation and crude prices. Among the Sectoral Indices, Auto,Banking, Oil & Gas, Realty and PSU stocks pulled the Indices downwhile the Metal stocks rallied. The underdogs Healthcare, IT andTeck sectors were the star performers (closing 5% above). In the endthe Nifty lost around 300 points while the volumes remained almostthe same.Now in the Nifty, the 78.6% retracement of the rise from 4628-5298points is at 4772 points. Trend line support in blue is pegged at4747 points. Hence the 4750-4775 points’ area is likely to attractsome short covering. Follow stop losses and trade. Unless and untilthe 5040 points is not decisively crossed, the short term trend isdown and for fresh up momentum, trendline resistance in pink(daily chart) at 5262 points needs to be sustained.Currently it is a traders market with stock specific movement. Noone is keeping commitment from a long term scenario. The Nifty isoscillating, while volatility of around 400-500 points is seen for thepast two months. Pullbacks are unable to get converted into rallies.As long as 5078 points is not crossed in close, markets will remainunder pressure with crucial support in declines pegged at 4681points. The Index Heavy weight stocks have to move up in tandemwhich will motivate the Midcap stocks to join and in turn could seea broad based rally on high volumes.
NIFTY Intra WeekVolatility 224 pts
S1 4785.00 S2 4702.35
R1 4968.00 R2 5074.00
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Trace & Track Report
Financial Tech (1736.15)The daily chart of Financial Tech shows thatit is moving sideways after a vertical fall.There is a bullish gap at 1680 which if holdswe could see a pullback. Resistance is atRs.1788 which needs to be sustained for freshup move. Immediate support is at Rs.1680while a breach of Rs.1571 would negate thebelow targets. Track in dips
Resistance: 1788, 1824, 1935.
Support : 1680, 1600, 1570.
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Wockhardt (297.60)
The daily chart of Wockhardt shows asideways move for the past two months. It istaking support at Rs.286 which if holds cantest Rs.310-315 in an immediate scenariowhich if sustained in close can test Rs.334 inthe medium term for which support is atRs.278.
Resistance: 315, 322, 336.
Support : 285, 278, 264.
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