STOCKS WEEKLY GLOBAL OUTLOOK AND STRATEGY: INDIA PREMARKET OUTLOOK: 07MAY 2009

May 7, 2009

INDIA PREMARKET OUTLOOK: 07MAY 2009

Indian markets encountered resistances and drifted lower inspite of very positive signals from around the globe. These indices have been rising vertically since their March lows and downtrending momentum indicators are urging them for a correction. Yesterday's down day was on good volume, implying that profit booking is taking place.

Even if there is more steam left here, it would be prudent to be vigilant at such heights in the short term. But medium term is very positive until far lower supports are taken out. There are multiple supports before that.

SENSEX/NIFTY

(The levels given below are on closing basis)

Immediate resistances is at 12272/3717. Once above here, the target would be 12568/3734 and 12900/3900.

Short term existisng long positions may hold as long as above 11677/3556. STerm traders may desist from initiating fresh longs below here. Medium term traders can buy on declines upto 11310/3457. Things would go awry for the bulls, only on a close below 11100/3375.

Friday close would portray much clear picture ahead. Watchout for the weekly outlook.

You can also have a look at yesterday's outlook.

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About the Weekly Outlook above
This page is updated from time to time unless, restrained by unavoidable circumstances. Every care is taken to give you a profitable outlook but trading in stock markets can be risky and cause financial loss. We do not take responsibility of any situation arising out of the outlook and recommendations here. Therefore, please use your own discretion!

We suggest a homework with pen and paper to draw your strategy. Trading on the basis of this outlook is a matter of developing a habit so as not trade all the time and every time; or keep watching the screen round the clock, looking for a kill. Just find some other occupation that keeps you away from the screen from time to time.

Plan your 'trade-setup' meticulously after a diligent homework. Have no heart burn if markets are moving up and you were not able to initiate trade. There are many who are losing also in a rising market because of a wrong trade-setup initiated in an unplanned manner. You never miss the bus in stock markets as it stops by you again and again. Just plan 'when' to ride profitably. May be next week or perhaps after 2-3 weeks and even next month series.

Long term investing is always suggested but this outlook is also suitable for swing trading, options trading or short term investing though, the given levels are relevant in any kind of trading or investing. The levels given here are effective on "closing basis". So, initiate or close the trade set up accordingly. Square off your positions well before the target and not wait for a precise hit of the target. Those who are not familiar with derivatives, may not trade in our F&O calls.

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Wishing you a happy and successful trading!