Nifty Weekly Technical Analysis for Week Beginning 7 May

General Anti-Avoidance Rules (GAAR) is the buzzword for every trader in Indian Stocks, Indian Markets have lost almost 10Billon$ of funds because of lack of clarity on GAAR.It is feared that the new rules could lead to a significantly high tax liabilities for FIIs, even if they route their funds through tax-friendly jurisdictions. Besides, the FIIs could be forced to pass on their tax liabilities to their P-note clients, thus adversely impacting their overall returns on investment.
Nifty is trading at 3 months low and breached the psychological and sacrosanct level of 200 DMA on daily and weekly closing basis.Sell in may is showing its effect.
Next week Greece election results which decides whether it will stay in EURO,How the EU markets see the ouster of Sarkozy Clarity on GAAR will either pave road for recovery or further impetus to the fall.
Last Week Trend Deciding level from 5217  has give both short and long call and people who traded would have made at least 150 points.

Nifty Hourly Chart

Hourly charts for Nifty looks quiet oversold and relief rally bounce back can be expected, But always remember its the higher time frame which has to be given more importance. Nifty can show a relief rally of ...


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