INTRADAY TIPS FOR 06 MAY 2011

GOOD MORNING!!!

INDICES EXTENDED THE SORROW OF CLOSING IN THE RED TERRAIN FOR THE NINTH STRAIGHT SESSION. MARKETS GOT OFF TO A FLAT OPENING TRACKING THE GRAVE ASIAN MARKETS WHICH PROLONGED THEIR GLOOMY RUN AS SENTIMENTS LARGELY REMAINED INFLUENCED BY THE OVERNIGHT WALL STREET WHICH DECLINED ON CONCERNS OF JOBS MARKET AND SOME WEAK EARNINGS AND ECONOMIC REPORTS. THE INDICES SHOWED SOME SIGNS OF RECOVERY INITIAL IN THE MORNING SESSION BUT COULD NOT HOLD ANY LONGER AS THE PROFIT BOOKING AT HIGHER LEVELS TOOK ITS TOLL ON THE INDICES. PANIC SELLING IN THE INITIAL HOURS OF SECOND HALF PROVED COSTLY FOR THE BOURSES WHICH COULD NOT RECOUP THE LOSSES IN THE REST OF THE SESSION. THOUGH SOME SHORT COVERING WAS WITNESSED IN THE DYING HOURS OF TRADE, HOWEVER, THE RISE WAS UTILIZED BY BEARS TO TAKE PROFITS OFF THE TABLE AND BATTER THE BENCHMARKS TO THE SESSION’S LOWEST POINT BY THE END OF TRADE.

TODAY MARKETS WOULD REMAIN NEGATIVE AND CONTINUE TO BE UNDER PRESSURE, IF NIFTY TRADES BELOW 5448 THEN LIKELY TO COME DOWN TO 5419 AND BREAK BELOW THIS LEVEL WOULD TAKE NIFTY DOWN TO 5387 LEVELS AND FURTHER TO 5365 LEVELS. ON THE POSITIVE SIDE IF NIFTY TRADES ABOVE 5470 THEN WOULD MOVE UP TO 5500 LEVELS AND ANY BREAK ABOVE THIS LEVELS WOULD TAKE IT TO 5530 LEVELS AND ABOVE THAT 5574, ANY CLOSING ABOVE 5574 LEVELS IT WOULD CHANGE THE TREND IN THE MARKETS FROM NEGATIVE ZONE TO THE POSITIVE TERRITORY. ANY CLOSE BELOW 5365 WOULD TAKE NIFTY TO MUCH LOWER LEVELS.