Broader outlook and stocks for May 19th, 2014

High volatility characterized trading as investors reacted to leads and results of Lok Sabha election that showed that Narendra Modi was on course to wrest the top job in the country as a saffron wave swept large swathes of India and leaving Congress in tatters. Nifty made a historic high of 7563, but later gave up all the gains on profit booking.  FII Bought INR 3634.82 crs and DII Sold INR 349.32 crs.

Shorterm Trend
Big day has happend and it is historical day as BJP swept cong and other major parties and has won majority on its own. Now coming to trading Nifty made a high of 7563 and my expecttion of 7300 has crossed and now the reality as it is too huge a figure later it gave it gains and has settled at realitic levels. Now we have new range ad range which is 1000 points from 6000 levels and will shortly come up with levels for trading. Let the marketkt to settle and we will take a call after some time.

Nifty is good as long as it is above 7000 and shorts can be take only below this level if Nifty trades for few days on the other side if Nifty reaches 7100 and takes support it is a good level to enter for 7300 with SL of 6950. My Target for medium term is 7800 to 8000 if we see some good decisions by new government. I am sure cyclical are going to day well in near future and the upside seems to be still there where as IT and pharma are looking weak may continue to be weak for some more time, but would like to buy IT at good support levels.

Intraday Levels
We could see good gapup again and if that happens not sure we have trade again, instead would prefer to buy indvidual stocks at good levels. Nifty is good above 7250  if we get this level on its downside move and move above this level for 7265 and 7280 with SL of 7230 and would sell below 7350 if Nifty goes down from higher level for 7335 and 7320 with SL of 7370.

Top pics for the day are  RelInfra,SSLT,IOC,PFC, Engineers India, AdaniEnt, ICICIBank, BhartiAirtel, Arvind and Wipro for Buy/Sell and correct levels contact
vijaykumarrao.invest@gmail.com.