Nifty Views for May, 12, 2009

Finally, some correction happend in our markets. Now will this correction continue, is the big question.

The way we saw profit booking happening yesterday, there was not much buying seen at lower levels. This suggested that this correction might continue for some more time to come. It is extremely important to trade only on intraday basis in this scenario as Nifty can swing anyway due to heavy newsflow that is going to come in.

On Tuesday, May 12, 2009, Nifty is expected to open flat. IIP data is going to be released today and that will drive the markets. Since this markets is looking for a reason to correct, that might just trigger the correction. If its good, it might not have a very positive effect on the market, but if it is bad, it might just trigger a sell off in the markets. Hence, it will be better for traders to stay light before the news come out.

Intraday traders may short Nifty below 3545 keeping a stoploss of 3560.

Nifty resistance at 3585-3615-3675. Support at 3550-3520-3490-3430