Next week 3 may we have our RBI policy, Expectation are high for rate cuts as Bank Nifty is up 1100 points in 8 trading days. If RBI disappoints the market we can see a corrective decline in market. As Nifty and Bank Nifty both have rallied before the event The market will take some cognizance of what has happened and just take a breather.Market has definitely factored in 25 Bps rate cut and so if we have a 25 bps cut on the policy day than we can see a definite sell of but if the governor surprises us with a 50 Bps along with a CRR cut than only we may see a rally above 5950.
The stock market remains closed on Wednesday, 1 May 2013, on account of Maharashtra Day. Trading Holiday for 2013 can be seen on this link.
Last week we gave Trend Deciding level as 5830 achieved 2 weekly targets on upside.
Nifty Hourly Chart
Nifty Hourly charts has broken the 13 Hour Moving Average Support which it took support in the rally from 5477-5931. Now this MA will act as resistance and any up move will get sold into till 5905 is not broken on closing basis.
For Nifty traders who follow gap trading there are 1 trade gaps in the range of 5400-6000 and all other gaps got filled.
Nifty Daily Chart
As per last week analysis Nifty was able to overcome the Falling trendline resistance at 5830 with a gap up opening and continued with its rally on upside. 50 DMA@5767 will act as strong support now , which Nifty was unable to cross previously for next 5 attempts.
Nifty daily chart took exact support at Fibo Fans and bounced back as expected.Trading between the Fibo fans resistance comes at 6000 and support at 5786
As per of Fibo Retracement theory Nifty took resitane at 61.8% retracement of 5477-6112. Unable to cross golden ratio at 5871 on closing basis can spell trouble for bears. Crossing the same on Monday can lead to next resistance of 5971
Nifty Weekly Chart
We are approaching MOnthly closing and Bulls will want to keep nifty above 5945 for monthly time frame to be bullish.
Nifty Trading Levels
Nifty Trend Deciding Level:5900
Nifty Resistance:5940,5971 and 6000
Nifty Support:5836,5790 and 5750
Levels mentioned are Nifty Spot
Let me go by Disclaimer these are my personal views and trade taken on these observation should be traded with strict Sl
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