MarketGyaan: BULLS WILL CONTINUE TO DOMINATE MARKET THIS WEEK

Monday, June 1, 2009

BULLS WILL CONTINUE TO DOMINATE MARKET THIS WEEK

7:16 AM Posted by MARKETGYAAN

Sensex gained 5.31% and Nifty gained almost 5%. Overall broader market’s strength remained very strong last week and could remain strong this week also. Sensex and Nifty both closed at 12 month high on 29/05/2009. Sentiment will remain bullish and will be fueled by FII’s buying, Government’s reform steps and Global rally lead by US markets. Intraday booking can not be ruled out but the bias will remain on the positive side. So buy on dips strategy will work better than sell on highs. Sensex created Gap between 12272 and 13479 on daily chart. This Gap acted as support since last 2 weeks and market bounced back sharply from that support area. Support for the week comes to 4350/4250/4200 on Nifty and 14300/14000/13800 for the Sensex, while resistance for Nifty comes to 4550/4650/4740 and for Sensex 14900/15500/16000.

STOCKS TO WATCHOUT THIS WEEK

Infosys, Bharti Airtel, Suzlon, Unitech, ABB, Cairn India, Hindalco, RIL, TATA Power and M&M.

MIDCAPS & SMALL CAPS TO WATCHOUT THIS WEEK

Aban Offshore, Great Offshore, Punj Lloyd, APIL, AREVA, GTL Infra, NorthGate Technologies & Century Textile.

US INDICES

Dow Jones is trading in the range of 8200 to 8600 (Chart Posted) below. Dow Jones if breaks 8600 on the higher side, we could see 9100 on the Dow Jones. If 8200 breaks on the down side it will take Dow Jones to 7800-7700.

DOW JONES