Nifty Outlook 9th June

Cash is King!

Pivot 4984
Support 4947-4916-4896
Resistance 5006-5031-5062

After making a new high after almost 3 weeks Nifty is back to square one.
Nifty had a very bad session yesterday.

After moving in positive territory after opening, Nifty slipped to close below 5000.

This is a bad sign as a whole.
One may not think of some strong support in very near future.

As per Fibonacci theory Nifty (Spot) has two support zone at 4963 and at 4916.
Well the first level was very well respected on Tuesday by Nifty(spot).

But a close below 5000 indicates inherent strong weakness in Nifty and we may see more correction now.

So we can expect some support coming up near 4916 level.

Next support for Nifty is very close and its placed at 4896.

This level is also likely to be tested in the current wave of weakness where everybody is busy selling whatever is owned by them.

The triangle formed by Nifty charts clearly indicates very big selling in the range of 5110-5125 level which was proved to be right and Nifty is more than 120 points below that mark.

Another triangle indicates that Nifty may take support at 4836 level in case 4896 is breached on closing basis.

We are of the opinion that one should do buying on dips but get ready to take minor loss in case of closing below 4896.

SInce overall picture is bleak so one should also sell on rally and accumulate cash.