Asian cues aren’t that great, almost all the major indices are trading in deep red. Japan’s Nikkie and Hang Seng are trading with 2.5% cut, Shanghai composite is down 2%. US Markets ended in red on Friday on the back of worsening situation in Euro zone Debt crisis .
Market uncertainty is ruling high and breach of support level could see violent swings on the downside, Nifty will open close to 5000 today and 4990 will be the support tested if this gets broken then last hope for bulls is to save 4970 below which there will be bloodbath in the markets. Nifty is expected to trade in the red for most of the time and close below 4990 will further increase the weakness.
Our trade recommendation are on a roll as call given on 13 May is in deep profits now and i feel it might be prudent to convert that profit in cash.
Trading Strategy : Square off the nifty Futures Shirt position taken on 13 may at the level of 5010. I would like to see how will Nifty react at its 100EMA before taking any fresh position.
Once below 4970 we might be headed for 4830 that will be the level where cash based buying is recommended on Fundamentally strong counters like Reliance Industries, Axis Bank, IFCI, Bharti Airtel and UNITECH.