Nifty Outlook 3rd June

For most part of the day Nifty traded in a narrow range but finally managed a break-out and jumped 50 points.

Pivot 5001
Support 4989-4961-4934
Resistance 5037-5062-5091

It was breather for most traders as market breadth turned positive and many long position were built.

Reliance communication was biggest index gainer.

Telecom stocks zoomed on various speculation.
Sugar sector also saw a lot of long build-up.
Pharma sector is looking a safe heaven to many traders and heavy built up is seen in this sector as well.

Nifty is in confused zone at present and nothing decisive can be said about its future coure of action until Nifty breaches 5035 and stay above it.

A fall and close below 4990 may again initiate short positions in the market and long unwinding.

It will create a scenario of last few session and we may again see a new intermediate low.

If Nifty close above 5100 then things will be in full control of bulls and we may see much higher levels then.