4,980 Is A Major Barrier To Cross On Upside For Nifty, Says P K Agarwal
Alex Mathew, Head of Research, Geojit Financial Services stated that on Thursday (May 29), Nifty was struggling to break the crucial resistance of 4,950 levels, but lastly fell towards 4,800 levels and ended the day marginally higher at 4,837.
Nifty upturn was well below the average rollover figure of 75% and was at 62% suggesting weak viewpoint for the stock market.
The stock market participants were unwilling to carry over their positions (Nifty) because of improbability over petroleum price hike. On the stock side many stock futures, short positions were carried forward to June series.
Banking and metal stocks futures saw high upturn while oil and gas stocks were having lower changes.
The Nifty June PC ratio is above 2.17 suggesting firm and lower level support for Nifty.
Nifty has support at 4,807 if crosses below 4,775 then caution should be taken. On the other hand above 4,865 market can show strength, he added.
P K Agarwal, President, Research, Bonanza Portfolio said that Nifty, on May 29, opened positively at 4,926, with optimistic global cues. It went upto resistance of 4,957. After first hour of trade selling came in.
Nifty was swinging between positive and negative, most of the time. It broke important support of 4,840, touched a low of 4,801 but sharply came up, to close at 4,835.
Major action was seen in Reliance Comunication, L&T, Cipla etc. But, Tata Motors, M&M, Ambuja Cement were weak. Banking sector continued its downward trend. Power, Reality and Oil & Gas remained weak in yesterday’s trade.
If the support level of 4,840 levels is broken, then 4,800 is the next visible support as Nifty goes down.
4,980 is a major barrier to cross, on upside, Mr. Agarwal added.