Nifty Outlook 27th May

Market will gain strength if Nifty close above 4900 level for two more days.

Pivot 4902
Support 4883-4854-4824
Resistance 4939-4967-4998

BankNifty Pivot 8999
Support 8955-8901-8845
Resistance 9065-9124-9190

Yesterday Nifty gained more than 111 points due to short covering.
Most of the Tuesday's fall compensated on Wednesday and in the last three sessions Nifty barely lost 20 points from its previous close.
So does it mean that Nifty weakness is all done?
Are we now headed for a strong relief rally?
Will Nifty start upward move now?

Well our answer to all these questions is a BIG NO.

Each and every indicator on charts still put Nifty in weak zone and so far Nifty is not oversold.

Until Nifty gets oversold its useless to create long position.

Again as long as short term outlook is negative one should avoid playing long in the market.
Keeping long positions in this market will be like catching falling knives which will only harm the traders.

Although Nifty manages to close above 4895 level on Wednesday, it is still not showing much of strength.

Only day trading is best approach in this type of market and we suggest you to trading only.

Some long term positions may be made in selected blue chip stocks but only for investment purpose.

Weak banking stocks and interest sensitive stocks like realty should be avoided.
Pharma and FMCG stocks are a good bet.