Nifty Outlook 28th May

It was a wonderful day for our market.
Nifty zoomed up and away due to short covering and expiry factor.

Pivot 4982
Support 4962-4928-4895
Resistance 5031-5059-5080

BankNifty Pivot 9228
Support 9200-9149-9091
Resistance 9295-9359-9410

RBI's decision to cut SLR by 50 bps to infuse liquidity into the system also helped the index to gain so much within a day.
It was the banking sphere which must face some action due to this but punters kept the action under check till the wee hours and Banking stocks led the rally almost in the last 1 and half hour.

These factors seems to be for good of the market health for short term and Nifty may rally till 5100 with comfort.

Level of 5100 is both 3rd retracement Fibonacci level and 50 DMA.

Hence short covering may lead Nifty to this peak before any correction begins.

If we are able to see another closing above 4900 then it will be good sign for us.
It will also be positive closing by Nifty on weekly basis, which is a good omen.

We still advise to buy only blue chip stocks.