Nifty Outlook 19th May

Yesterday was another very volatile session for Nifty.

Now just look at that:
Nifty Fut Open: 5055
Low: 5017
High: 5107
Close: 5063

Was it possible to make full use of trend by everybody.
The rise was due short covering, while correction was due to fresh short built up at higher level.

As we advised our readers to sell on rise, must have been a fruitful tip for them.

Presently market is very jittery and we are in the middle of a bear phase.

As we mentioned even earlier that the bear phase is not going to be over until Nifty regains certain levels.

Thankfully Nifty closed much above one very important turning point of 5002.

Another important hurdle is 5104 level. If level is achieved and closing is seen above it, then Nifty may test higher levels.

If Nifty closes above 5172 level then it will be back in bullish zone and we may see a new high above 5400 level.

Overall the market picture is not so promising and we may see these levels easily in coming few weeks.

Our advise is to exit longs on rise and create as much cash as possible.

On the lower side if Nifty close below 5002 level then Nifty may test 4895 level.

If these levels are seen then some delivery buying in blue chip stocks can be done.

Pivot 5059
Support 5034-5002-4972
Resistance 5081-5107-5137