Mr. Vivek Gupta, CMT - Director Research, CapitalVia Global Research Limited.
When market become unpredictable ,Investors should follow famous quote "when you have doubt stay out".Best option is to wait till the storm gets clear. However they may focus on fundamentally strong corners and should use buy on dips strategy and avoid frequent entry exits based on rumours. More importantly Keep emotions like fear and greed aside.
"Nifty Future opened on a positive note and crossed its previous week's trading range above 8350 levels hitting its highest levels in more than four weeks. The market breadth indicating the overall health of the market was positive. In overseas markets, the Bank of Japan today, 22 May 2015, kept its policy on hold, saying the country's economy is improving moderately, keeping the bank's annual asset purchases at 80 trillion Yen ($660 billion).
Movement of index in near term will depend on further reforms initiatives to be taken by the government and upcoming fourth quarter results of companies like Tata Motors, Tech Mahindra, Sun Pharma, Glenmark, BPCL, ONGC, IOC, HPCL and L&T, etc. to be announced next week. Nifty May Future gave closing at 8444.60 with weekly gains of 183.40 points. Technically, Nifty Future is expected to continue its current up move till 8600-8650 levels which is also the 50% retracement level of the recent fall and it may consolidate their. Once it crosses next resistance zone, further up move can be seen while if it breaches the immediate support level of 8330, it is expected to correct till the levels of 8200 - 8150."