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Posts Tagged ‘May

Trend reversal likely below 5250-5350

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In my last blog on 13 May 2011, it was clearly mentioned that markets staying below 5500 could see levels of 5400 which is a very strong support. May expiry started at level of 5750 & now stands at almost 7% down in this expiry. In the current expiry, banking stocks have been worst hit and from the frontline stocks, SBI is the biggest loser down by almost 25%.

From the first week of May, as previously mentioned by me that indices can go up to 18000 / 5400 after it breaches the level of 5700 / 19000. Since last few days markets have started trading below 5400 levels. Outlook based on the charts seems bearish as long as it stays below 5400 and further, the situation will become more bearish if it does not sustain above 5350. Short term oscillators are showing some signs of optimism but it needs support based on the key levels.

If indices manage a bounce back & later sustain above 5460 there is a strong possibility of resumption of uptrend. Tomorrow being the first day of June’s Future Option series, it needs to be monitored very closely for any early indication of change of trend.

Written by Rakesh Gandhi

May 26, 2011 at 7:19 pm