The markets zoomed 2.4 pc last week and is now nearing the cluster of resistances. The expiry of the May series is also this week. Let us see what the markets have in store for us.
1. The expected resistances are in the 8500-8600 region and we are almost there. From here, there are 2 probabilities, 1 is we move down to test 7700-7800 or we move straight ahead to test the old resistance of 8800.
2. The next trigger for the markets are the RBI rate cut likelihood on June 2nd and the onset of monsoons. The 2 key events are lined up in early June. Hence, this being expiry week, I expect the markets to be subdued and trade within a range.
3. The FIIs have again begun to buy after the dust up over MAT has settled down. DIIs are also supporting the markets. This has lead to the increase in the Nifty over the past week as the selling pressure has ebbed.
4. Trend line resistance comes to between 8580-8600 for the week. Support comes at 8331.
5. The RBI policy has expectations of a rate cut being built in. If there is no rate cut then that could be a trigger for correction to take place. The RBI may wait to see how the monsoon progresses and then cut rates some time later in June.
6. The Life Insurance and Accident Insurance Schemes launched by Narendra Modi have been a big hit with almost 7.6 crores people opting for it. Such schemes were badly required at nominal rates.
It is now time to be a bit cautious, start booking part profits if bought at lower levels. If this is just a corrective up move then it may mature this week and we hit some kind of interim top. If that is the case then we will continue making lower highs and lower lows. 9119, then 8845 and so on.
1. The expected resistances are in the 8500-8600 region and we are almost there. From here, there are 2 probabilities, 1 is we move down to test 7700-7800 or we move straight ahead to test the old resistance of 8800.
2. The next trigger for the markets are the RBI rate cut likelihood on June 2nd and the onset of monsoons. The 2 key events are lined up in early June. Hence, this being expiry week, I expect the markets to be subdued and trade within a range.
3. The FIIs have again begun to buy after the dust up over MAT has settled down. DIIs are also supporting the markets. This has lead to the increase in the Nifty over the past week as the selling pressure has ebbed.
4. Trend line resistance comes to between 8580-8600 for the week. Support comes at 8331.
5. The RBI policy has expectations of a rate cut being built in. If there is no rate cut then that could be a trigger for correction to take place. The RBI may wait to see how the monsoon progresses and then cut rates some time later in June.
6. The Life Insurance and Accident Insurance Schemes launched by Narendra Modi have been a big hit with almost 7.6 crores people opting for it. Such schemes were badly required at nominal rates.
It is now time to be a bit cautious, start booking part profits if bought at lower levels. If this is just a corrective up move then it may mature this week and we hit some kind of interim top. If that is the case then we will continue making lower highs and lower lows. 9119, then 8845 and so on.
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