Nifty has broken the major supports at 5150/4950 and the intermediate uptrend has been broken but no momentum seen on the downside. On a longer term trendline and short term parallel channel supports are placed at 4800. An uptrend can resume above 5050. Expect range bound moves between 4800-5050 any move beyond this range will give a trend change giving a 200-250 points directional move.
The view for 6000 Nifty has been negated with the close below 5050-5100. Nifty has reached oversold levels equivalent to major panic bottoms like December 2011, October 2008, March 2009 and a major bottom formation takes some weeks around this levels.
The most important thing to note today was a huge volume on cash stocks today and in Nifty too ( look at the last green tick on the chart above ) . Maybe it could be because of expiry but we did see a lot of cash volumes and some wild spikes in Reliance Inds, Infosys, Bank of Baroda and many stocks in derivative segment.
June will be an interesting although i am very optimistic on this month in terms of returns.
Happy Investing,
Nooresh
