Indian markets closed the week on some good recovery, but still this was not strong enough to hold nifty above its resistance level of 5569. So we are again back in the consolidation expecting the breakout in the coming sessions. However our strategy for next week will be to enter long only if nifty manages to close above the 5571 mark continuously for 2 trading sessions. The targets for long position above 5571 will be 5688 and 5777 levels, also placing a protective stop loss around the 5535 zone. So strong closing above 5569 level will only open the way for 5688 level in the coming week. Also the range for nifty will be 5500 to 5700 for June series. We expect strong buying coming in the broader markets next week, supporting the markets to touch its next resistance of 5688. Also on downside Nifty has support at 5535 and 5479. So a trader must open only long positions in this markets for weekly target of 5688 and 5777.
Our Recommendation: Nifty futures is more likely to bounce to 5688 levels next week. Technically nifty is having strong support at 5535 and 5479 level and resistance at 5688 and 5777.
Our trading strategy for next week 6 June 2011 : Buy nifty above 5571 level for weekly target 5688 and 5777. Also place stop loss near 5535 on closing basis.