Market Outlook for the week 12-16May

On Friday Shares hit a spike high as rumours pointed to a sweeping win for the BJP, seen as more business friendly than the Congress party. With these speculations Nifty fut bounced back from 6661 to 6898 on Friday. The present rally may not continue for long and the market is more likely to move sideways. Political uncertainty is high. But if the BJP comes to power, the Sensex is bound to jump with enough support coming from foreign institutional investors

This year, investors seem excited with expectations that the BJP will form the next government with Narendra Modi as the prime minister. They hope he will give priority to development by reforming policies and governance. Indian markets are so confident BJP will win the country's elections that brokers fear anything short of a decisive victory could spark the worst sell-off in years.

Should BJP do poorly in the elections and Narendra Modi not become prime minister, shares could plunge 8% to 10% in one day, and up to 20% in the aftermath. 

We all know that this market is insanely manipulated and totally disconnected from reality, but those are the facts… and we can’t change them! So, you just have to ask yourself “will we crash first, and then rally back up?”, or is it “more likely that we will go up first and then crash later?” We think the answer is obvious! Read the facts provided for knowledge & use your own wisdom to trade in this market .

We do see crooks continuing to stretch this volatile rides further, with more pain for the unknown retail trader. We are just not believing this manipulation, but that’s what they want us to do..... so we’ll go broke chasing a top.  Just play it safe everyone, as chasing this bull is going to break you if you don’t take a breather and still out from time to time. Riding the bull takes guts, as he can throw you at anytime.  But, we all know that the gangsters manipulate this market to steal our money and trick us at every corner. So… expect the unexpected!

For the week starting from 27August, Nifty fut is having support at 6848 level once this level is breached and sustained then we can see lower levels of 6780-6714-6660. For a broader view, Bears will gain strength once the support level of 6660 is taken off decisively on closing basis & this could lead them to show some real panic in markets for a steep fall of 225-550points. However in current scenario the bulls are having upperhand. but as we have mentioned in earlier market views also, that 6965 level is a near term hurdle for the bulls, & Nifty fut will face resistance around 6965, if able to cross & sustain above this then we can expect higher levels of 7084-7235-7324+. Decisive crossover/Consecutive close above 6965, for short term the bulls will be the king of markets. Positive outcome of the results in favor of BJP led government can take this market to 7500+ levels in a spike rise movement.

Looking at the current scenario, Nifty fut have a support zone around 6600-6660 so traders must stay cautious around these lower levels. Till markets are sustaining above 6660 level on closing basis, bulls will regain their strength from every fall to give a tough fight to bears. Bears will have a party time once again only if the markets give consecutive closing below 6660 level. Trading in this market without any knowledge/advice of market directions can be a losing game all in all, so a good advice is the basic need for minting money from this market. Being an election result week we may see some steep movements in markets and markets may show some clear one side direction. Traders are advised to hedge all the positions accordingly, and don't trade blindly without judging the market movement.

Stocks for short term  (Traders need to keep booking profits on every 3-10% rise)

1. Singer India
2. HDIL
3. Tata Elxsi
4.  Biocon
5. Tata Steel

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

 

Weekly Nifty fut Levels

Resistance: 6965-7084-7235-7324

Support: 6848-6780-6714-6660

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For all trades, keep trailing your stop loss once the stock is above the buying price. Don't take delivery of any intraday call. Avoid spike buying.

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