Short term view on Nifty – 04th May 2011 (video)
Yesterday Nifty closed at 5565 with a massive loss of 2.4% comparative to its previous day close.
We at GEPL Capital are of the view that market is placed at very crucial support of 5550. Breach and sustenance below 5550 may drag down Nifty up to the mark of 5400 in the immediate short term.
Market is continuously facing supply in the area of 5700 and above that at 5750 where its 200-DMA is placed. Due to the slightly oversold nature of the market in extreme short term, a minor rebound up to the mark of 5700 may come where positional traders can go short with a stop loss placing at 5760 and target of 5400.
In our view, BSE -Bankex, BSE-Auto and BSE -Realty will under-perform the broader market while BSE Health Care and BSE FMCG will out-perform the broader markets.
