Nifty Update for May 11 - Inder Bhatia

Buy NEYVELILIGNITE above 104.40 TGT 110>113.50 Stoploss 100.50.

Sell AMBUJA below 75.30 TGT 70>68 Stoploss 78.50.

Nifty weekly chart seen breakout and close above major downward sloping line. Next resistance 3793 and strong support 3240-3173.

Weekly: Last week sensex gained 4.15 percent and Nifty gained 4.22 % respectively. Sensex closed with a 9th consecutive weekly gain. As we mentioned last week a breakout or breakdown from range is and a target 3705 on upside was likely. We have kissed the 3700 zone and moving further we can see multiple resistances around 3800-3850.

Daily: As per daily chart we are near the upper band of the trading range from breakout pattern as shown in chart. For the coming weeks the formation of government with election results could cause an increase in volatility on the both sides, so one can wait and watch and move cautiously.

For this week, the level to watch 3535-3500 gap zone for bounces and trading above 3720 Nifty will test 3790-3820. On the lower side closing below 3520 we can see sell off toward 3420-3300 zones.

The Indian market opened on a higher note and saw a sharp correction from higher levels and close in the red zone. However the market witnessed heavy volatility in the last two trading session and closed in the red zone. For the coming session if Nifty trades below 3600 levels it can test 3567-3547. On the up side trading above 3665 it will test 3693-3715.