Nifty Outlook 31st May

After many weeks Nifty managed to closed with gains on weekly basis.

Pivot 5049
Support 5001-4973-4948
Resistance 5056-5084-5103

BankNifty Pivot 9189
Support 9163-9114-9061
Resistance 9295-9359-9410

Today is very important day for our markets.
Nifty is up more than 100 points from previous week closing.

This is an important closing as it signifies a possible turn around.
We expect that Nifty may regain upside further if it stays and close above 5100 for at least two sessions.

Although it to be noted that Nifty is at cross roads.
Any closing below 5000 may again give power to bears and the push Nifty further near 4895.

Nifty future is already trading with some 20+ points which points to punter's current short build up in Nifty.

We advise traders to stay on sidelines for the time being and wait for some clarity on the basis of Monday's closing and than decide for the future course of action.

Presently sugar sector is looking very strong and there is some positive news waiting to happen.

Besides this pharma stocks are also looking hot and buying in selective stocks can be done.

Banking stocks are looking weak compare to other sectors due to NPA burden that may come their way due to reduction in SLR.
Hence selling in selective large and mid-caps selling can be done in banking sphere.