Thursday, May 3, 2012

EOD Analysis For 2nd May 2012 and Outlook For 3rd May 2012

OI in Nifty futures still hovering around the 20-21 million mark and VIX is still below 20!

Critical levels and Outlook remain unchanged for both Nifty and BankNifty

Nifty Support Levels: 5032-5092-5136-5177-5225 [can stage a breakdown below 5032 opening 144 points to the downside]

Nifty Resistance Levels: 5280-5310-5348-5408 [can stage a breakout above 5348 and 2 consecutive closes above 5408 opens up a potential 144 point move to the upside]

As of now for May series, both breakout and breakdown scenarios are least probable IMHO and we should see consolidation within 5032-5310 range and this is still pretty good to trade via futures. It is an option writers paradise :D

[BNF Range therefore IMHO translates to 10150 and 10750 with same breakdown and breakout conditions]

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