Nifty extended its pull back to 4930 zone but we could see
lack of confidence at upper levels. In the coming days it can take support at
4830-40 zone and expected to trade till 5030 zone. It would just be an
extension of the pull back so it can be 5000 or 5030 levels and the upper bands
are points to exit. Dollar/INR has registered a new high and that would be a
major worry for equity markets to go up. Turnover data was one of the worst in
the recent past and shows people are staying away from the markets till there
is some clarification regarding the policy measures. Thus it is better to square
off the buying positions on intra day basis. As per time cycle if Nifty has to
surpass 5000 zone it has to do be on or before 25/ May. Thus till Friday this
can be the maximum upside range that we can expect. The overall picture for
nifty would be making a small range with some sideways move or whipsaws. After
some sideways action it is expected to trade till the previous low zone of 4500
levels in June series. Volatility data shows some short positions are building
up at upper levels so a sharp move can cover up all these positions. On the
lower side 4840-30 remains to be a strong support zone and that region could be
the stop for all long positions.
