Nifty Outlook 25th May

Pivot 4931
Support 4912-4886-4851
Resistance 4949-4988-5011

BankNifty Pivot 9099
Support 9050-9011-8975
Resistance 9112-9163-9221

Nifty made yet another yo yo chart yesterday.

It was very interesting to see the high and low of Nifty for Monday.

Nifty made a high of 5023 and a low of 4912 and both were made during the market hours and not at the opening bell.

So both the high and low were NOT fake and were very much genuine.

Nifty closed near the day's low and it means that people are reluctant to keep long position open at higher levels.

After such a huge gap up opening it was evident to see some sharp profit booking any ways.
But this type of profit booking is not at all healthy for our market.

The positive news flow from Reliance group gave a lot of strength to Mukesh Ambani led shares and it kept Nifty in positive territory for the most part of the day.

But there was a huge pressure on banking stocks and it led to big ticket profit booking.

Nifty closed below important support levels and failed to breach the 1st Fibonacci retracement level as well.

Now to regain strength Nifty must trade above 4988 with good volume.

Looking at the graph formation, if Nifty stays above 4988 then it may easily cross 5059 level.

Here we may see strong profit booking again as it is the 1st Fibonacci retracement level.

We again reiterate that market is internally very weak and is standing at the crossroads.

Until Nifty close above 4999 level we are in sell on rise mode and any bounce back must be used to reduce long positions.