Passed Week ( 2nd May to 6th May 2011 ) :-
Sensex was down 3.20% (466 points) to close at 18519 levels on a week-on-week basis. The FIIs were net sellers throughout the week and due to their selling activity the market was traded negative most of the days of the week. In the month of May (up till 5th May 2011), FII have net sellers to the tune of 3211 crores while domestic funds (DII) are net buyers to the tune of 2308 crores. Nine consecutive trading sessions were in in negative before Friday when it pull back somewhat to manage close above 5550.
The S&P CNX Nifty also closed in RED down by 198 points or 3.40% to close at 5551 levels on a week-on-week basis.
During the week, RBI hiked Reverse repo, Repo by 50 bps.
Institute for Supply Management (ISM) released a report showing that the pace of growth in US manufacturing activity slowed less than what had been anticipated by economists in April 2011.
Coming Week ( 9th May to 13th May 2011 ) :-
5700 is the crucial level above which the index could see a momentum for further upside. Though there would be an stiff resistance at 5628 (200 day EMA) and 5700 levels which was the previous support.
The major companies declaring their Q4 FY11 earnings would be Adani Power and NTPC.
A sustained close below 5500 levels could see the index remaining under pressure and the key supports on the downside are placed around 5300-5350 levels.
If you want to play Nifty this week, go short at 5630-5660 levels and go long at the key support levels of 5350-5300 strictly followed by stop loss.
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