Market outlook for the week 30May-3June

Indian equities continued their winning streak on Friday as investors enlarged their positions in realty, banking and metal counters. The Nifty June F&O series, too, kick started on an upbeat note as buyers shrugged off rising food inflation concerns and bought blue chips across the board. The Sensex closed shop at 18266.10, higher by 221.46 points or 1.23% and the Nifty ended up 63.30 points or 1.17% at 5475.6

Well, since the upside on last few trading sessions caught many bears off guard, it’s not likely to have filled the boat with them going into coming week. Just guessing of course, but we would say that all the bears that got short on lower levels below 5400 are now squeezed out. The relentless move up the last few days of the week threw those bears overboard we would bet. All bears were thrashed down by bulls badly.

Read the facts provided for knowledge & use your own wisdom to trade in this market.

So what happens next week is a tough call. Everything still looks very bearish for medium term, but the market still hasn’t broken major support of 5372 on closing basis. It could break up till 5490-5555 and squeeze the bears one more time for a while, or fool the bulls and break down through support. But in the meantime we can see markets consolidating in a range in month of June.

If this were strictly based on the charts, the market would tank shortly. But we all know that’s not the only thing to consider. We have too add in the “manipulation factor”… meaning, “What do the manipulators have planned?” Since we are still in a bearish mode (barely… and debatable), and there were likely a bunch of bears that got short over the weekend expecting a crash on Monday, we would say there will be a quick pop early on to backtest the highs of around 5490-5555, followed by a sell off later on.....this will make bears squeeze out & trap bulls on higher levels...this way both bears & bulls will be ditched & manipulators will take away money from both of them. You know they are going to steal your money, so what logic says....the adverse of that will happen.

Read the facts provided for knowledge & use your own wisdom to trade in this market.

This week, as long as the 5490 level, is not crossed bulls will take some rest & bears will attack decisively to drag down the markets. On the downside journey, support exists at 5410-5372, and once this level is breached then expect sharp slide to 5328-5290-5230 levels. As we have told that 5490 is a resistance level, & if this level is crossed then bulls can inch higher up to 5555-5595-5624 levels, but any upside around & above the level 5555 will be a resistance zone for short term & if markets reverts back from there, then we expect that area to stop the rally and then continue the selling. We are in a period now where the best thing to do is to book profits in long positions in resistance range and buy again in support zone and not try to swing trade in and out of the market, as you might not get another good re-entry spot for shorts again. If we bounce any at all, the 5555-5624 zone (can be used for booking long positions & reverting the trade) is now going to be resistance, and would be another good shorting spot. Any further bull action will only come only if markets are able to consecutively close above 5624 level in short term. Best way to trade in these kind of markets is to follow the levels strictly, instead of speculating on the basis of expiry, day closing etc etc. Just think from manipulators point of view, think of it like this, if you tank the market (when no one is expecting it), then you can rally it later, when everyone is looking for a crash to occur.....and steal the masses money of course.
Those who have wisdom, can read it & take their own decision for making money & not getting fooled by the big fishes of this share market ocean.

Nifty Future Weekly Levels

• Resistance- 5490-5555-5595-5624
  
• Support - 5410-5372-5328-5290
  

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Stocks for the week

• PVR Ltd
  
• Tamilnadu Petro
• Rajoo Engineers
• Educomp
• Muthoot Capital
• Camlin
• Brandhouse Retail
• Dena Bank
  

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