Nifty Outlook 05-June-2009

Bull Level

In case of flat opening buy nifty on retracement to 4553 with stoploss at 4523 for targets 4590, 4620, 4650

Bear Level

In case of gap up opening short nifty at 4650 with stoploss at 4680 for targets 4610, 4582, 4553.

In the scenario of nifty future breaking 4523 short at retracement to 4540 with stoploss at 4560 for targets 4485, 4435, 4405.

Several stocks have made bullish breakouts today. However, because nifty and sensex are at key resistance levels coupled with fact that we are in a fibonacci trend reversal time period, no stock recommendation is provided for friday.

Weekend Analysis of Index biggies

Sultan of Stocks – RIL

RIL found it impossible to penetrate and trade above 61.8 expansion level last week. This week, RIL will run into huge resitances at 2315 and 2375. Unable to trade above the first resistance level will be first sign of weakness in RIL and it can correct to weekly support levels at 2000 and 1950.

King of Banks – SBI

SBI was the strongest index stock last week retaining most of the gains it made on monday. For this week resistances for SBI are placed at 1875 and 1950 while supports are placed at 1590 and 1520.

Oil Barron – ONGC

ONGC was quite the star last week. In doing so, ONGC has moved to 61.8 retracement of the fall from its all time high and therefore at huge resitance levels. This week ONGC will have huge resitances at 1130 and 1180 levels. If ONGC is unable to cross first resitance level, it can easily correct to support levels of 980 and 920.