Mkt View - 05 May 08

Hi Friends,
A continuous weekly gain for the Nifty was witnessed in last four weeks.Nifty is seeing as of now a U shaped recovery.I thought its best time to analyze Nifty using the strength of its components and some of the trading favorites.L&T=Stock has closed above its 50Dma on Friday and can further move towards its 200dma in coming days.its 200day simple moving average is at 3345Reliance=actual strength provider for the markets to recover.Grasim= company is just 20 rs above its 52 week low price.Stock can give a small 10% bounce after making a fresh low.Infosys technology=Real time resistance at 1900 levels will be very difficult for the stock to cross the sameTcs=Weakest in large cap It names.Stock has to close above 1000 to show real strength.Rel= stock is above both 50dma and 200dma .Can hit 1800 levels in coming days.If it hits those levels will be the biggest surprise of 2008.Tata power= stock looking good above 1430 levels 1470 and 1510 levels are next resistance levelsBharti airtel= Stock looks good for 1000+ in coming days.Acc=Technically looks weak,Stock poised to move to 700 levels in coming days.Sail= technically the stock looks weak.Closing below 192 levels is negative for the stock in short term.Going forward i will cover some more stocks in my market notes and Niftyviews section.To summarize companies associated with cement,steel are technically not that strong.Grasim is just 20 rs above its 52 week low and a small bear run will make it show new 52 week lows.Going ahead the major event for the markets is inflation data on Friday and economic numbers coming out from overseas.Moreover there will be subscribers numbers being announced by Telcos.Cement dispatch numbers and crude steel production numbers by jsw.One factor worth noticing for the markets is that there is a sector rotation visible in managing and moving the index on the higher side.Technology,Steel,Oil& gas,Pharma,Fmcg,banks and Real estate sector.Expect some more sector rotation before the Nifty starts correcting.5368 is a double top witnessed in the recovery rally in Nifty.It will be difficult for the markets to breakout from those levels.I personally expect Nifty to show a 2-3 days small correction.
Nifty support 5211-5196
Nifty resistance 5259-5281