You must read previous articles and watch the given chart carefully to
understand this article completely.
Analysis 08 May 2018: -
On 07 May 2018: FII Net Sold – 635.24 INR Crs: DII Net Bought – INR – 1037.23 Crs
Indian market goes in parallel to the strength of global indices and
moved ahead. In recent days it moved from 9950 to 10800 without much significant
correction. As of now it can be concluded that above 10720 it has fresh sign of
strength and a test of strength will emerge at 10800+ levels before hitting
10910 levels. Well, momentum goes in favour of bulls.
For today’s trading session, my conviction is less in trading long
looking on to that we already have a big rise from 9950 to 10800. We have some
crucial state assembly election ahead which has a capacity to turn the table. Yesterday,
some private banks were in gainers list. This is surprising and inviting. Rather
than trading index at this point of time we should prefer to trade better
stocks. I still say, trade with caution in May month. We will get clear trade
from 15 May onwards after state election.
Avoid any kind of investment as market is still looking expensive.
Strategy for Nifty May future
– For today trading above 10750 we are getting signals trade long with a
possible hit towards or above 10800+ levels. If momentum favours then we can
see 10900+ levels in coming days but higher levels near to 11000 will invite dicey
moves. I prefer to avoid trades on index.
BANK NIFTY May future – I am
sceptical towards banking index since this January itself. From the levels of
25900, I have no great conviction but technical charts are favouring for a move
towards 26200 kinds of levels with support at stop loss should be at 25700
levels. It may try to cover a gap down which we saw in February month.
