Update for Thursday , May 28

Markets closed just above important resistance levels of 4270 . Tomorrow is expiry day and bias is on upside now .

- US markets are trading Flat .
- GM is close to bankruptcy .

I expect market to open flat tomorrow and it might start its upmove towards R1 levels of 4337 .

R2 4,397
R1 4,337
Pivot 4,226
S1 4,165
S2 4,055

I expect market to open flat to low and then start its upmove high. I am planning to avoid trading tomorrow . People who want to trade should buy at dips only and that too for June series . Last day of expiry can be very risky .
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DOJI again creating confusion for market , better to trade light this week

wooo ....

This is a strange day :) .. The pivot for tomm is same as close today :) . Nifty is making some DOJI these days inclding one today .



If you see 6 months charts of nifty , ADX is declining suggesting the weakness in trend , Its not a signal to SELL , but just to be cautious :) .

Better to trade light now !! , Dont take short positions just now , but wait for the moment and dont get caught in the madness of panic buying , This time if markets move fast and break 5000 mark , It would be wise to then wait and look for shorting opportunities .

At the time of writing , US markets are flat with little down moves . Markets are too confused all over the world on direction

Important Levels for Tomorrow

R2 4,303
R1 4,270
Pivot 4,238
S1 4,205
S2 4,173

Strategy

- Better to trade light tomm (actually whole week because of expiry) .
- Better to long positions based on oscilators signal (buy when RSI and Stocastics dip to oversold).
- BUY only above Pivot .

Disclamer : I hold a 4100 CA bought at 140 and it closed at 152 today . Looking to carry it further if its in profit , else i will sell it once Nifty hits below 4200 .




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Market View for Monday 25th May

Next week is Expiry week .

Markets have made spectacular moves this month after elections result and looks extremely overbought and bullish both . What does that mean ?

I am not saying markets may not go up more , there is no limit of insanity and emotional buying . But understand that this is the time to be extremely cautious . If you buy emotionally and put a big chunk and then market reverses back telling you that this was just a big rally in bear market . Your money will be stuck and you may take big losses .

Markets are consolidating and it resting before moving forward . Be patient and wait for the right opportunity to buy . This is from long term investing point of view . If you are short term trader with 1-2 days of time frame , what i just talked about may not be relevent for you .

Trade lightly this week because of expiry .

Pivot Levels for Monday 25th May

R2 4,308
R1 4,273
Pivot 4,215
S1 4,180
S2 4,121

Strategy for Monday

- Buy if markets open above Pivot levels .
- If markets open below pivot BUY only only when it reached support levels of 4160 .
- Better not to short now as it has already been in red for some days in this strong upmove .


- Have logical Stop losses .
- Control your losses .
- Dont prematurely book your profits thinking that you will loose what has already come to you .
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