Pre-Open Market Outlook(06-05-2011)

All trends are down and market is bearish. Market require complete consolidation for a Bullish rally and until that will not happen till then this possibility will not be considered. Short term oscillators are oversold therefore only pull back rally will be expected at this moment and it may begin after couple of hours to couple of sessions consolidation.

Huge voltality is Bear market character and will be seen also. Previous Wave(5177-5944) has been retraced 61.8%(5469) and Nifty closed below it ar 5459 yesterday,as mixed Patterns between 5455-5490 yesterday therefore if fresh consolidation develop near about then a very shot term up move will be seen. Next retracement levels are as follows:-

1- 70.7%- 5401
2- 76.4%- 5358
3- 78.6%- 5341
4- 88.6%- 5264

Next 3 supports are as follows:-

1- 5348
2- 5233
3- 5178

At present 1st Resistance range is 5525-5560 and until Nifty will not sustain above it till then bullish rally begining will not be considered. Mixed Patterns between 5455-5490 yesterday therefore Nifty will first trade within or near about this range for next moves preparations. Intraday consolidation today will mean only pull back rally possibility maximum upto 5525. Market is in Bear phase therefore fresh selling today will mean more sharp down moves toward above mentioned retracement levels and supports.

As mixed Patterns between 5455-5490 in last 3 hours yesterday therefore next immediate market and today closing will be decided according to first 2/3 hours trading.