Monday, May 24, 2010

Nifty Kisses the support only to bounce with vengeance

Nifty kissed the support level of 4850 on friday only to bounce back with a rigourous pull back. Early indicators point to a gap up open today. Big brothers reached a truce over the week end over the gas deal. This will definitely add as a catalyst for the bulls.

Asian markets are trading in the green early Monday morning on positive cues from Wall Street on friday. Remember this is another relief rally and this will might go on for the next 3 days. Also F&O expiry is slated for thursday. Markets will be highly volatile.

Maxpain for options decides the closing price of Nifty. We can stay away, avoid, sell on rallies this week. The crisis is bigger than the market expected. Expect Nifty to either go range bound or slide to 4400 in the next 2-3 months...

Midcaps will see night mares soon....Get out of the midcap space...Huge unwinding is yet to happen here.