Nifty Outlook 21st May

We saw a good bounce back form the lows of 4901 on Thursday.

Government announcement to increase gas prices explored by ONGC and OIL, the public enterprises involved in natural resources exploration pushed NIfty to upside and kept the index in the green throughout the day.

It was both a good and a bad omen.

As the price hike will directly impact the end users and it wil mount pressure on already soaring inflation.

This move will impact household cooking gas in metros including rise in auto fares and other public transport fares.

This is a really bad sign for intermediate term.
This move will create negative pressure in market until some strong measures are taken by government.

On the other hand it will improve both top line and bottom line of oil exploration firms as well as OMC's as subsidy burden would be reduced on them.

So some of the negative impact may be balanced out here but most of the gains are already seen in Thursday's market.

Yesterday Nifty remained in between important levels of 4895 and 5002 which signifies indecisiveness of traders.

Our advise for traders is to buy on dips as market may take sharp rebound from thse levels.
But only delivery based positional buying is advised in certain blue chips stocks.

There are very little chances that Nifty remains below 4895 level for long and it may rebound from these levels sharply.

So better stay invested now and buy on dips.

Pivot 4946
Support 4917-4884-4856
Resistance 4976-5002-5031