Pre Market Report 13-05-2009: If Nifty is able to trade above 3735 for a few sessions, then a breakout is possible.

Market expected to have flat to negative opening today.
Nifty have support at 3580 & 3610.
Nifty have resistance at 3700 & 3735.
Some volatility is also expected today.
If Nifty is able to trade above 3735 for a few sessions, then a breakout is possible.

Yesterday turnaround was spectacular and was on the same note as we described it yesterday on our blog.

Market showed strength at lower levels and buying on dips remain the order of the day.

A 16 year worst performance on the Industrial Production front was dismissed by the markets. A clear majority predicted by NDA led by BJP is speculated by many market analyst and it fuelled the market. NDA rule would bring breather to PSU stocks.

Last month’s imports of crude in China were the second highest ever that ignited a rally in crude prices.
International prices of sugar are at a 3 year high. Stocks of both the sectors and the PSUs will continue to do well today, as the markets move on to newer ground.

But since on political front anything may come out it is best to avoid overnight long positions and do only day trading.
Like in 2004 anything may be posiible in the coming days and major selloff come from Monday 19th May 2009.
Day trading may not cost you as much as a 20% fall in the major indices Nifty and Sensex.

Today if Nifty trade above 3695 then it zoom to 3710-3715.
Above 3720 Nifty will try to cross 3735 which is major resistance.
If Nifty trade above 3735 for 2/3 sessions then it may zoom to kiss 3760-3790-3810 as well.

If Nifty breaks below 3650 then it may drift lower to 3630 level.
Below 3625 Nifty would find support at 3610 below which Nifty may drift lower to touch 3590 as well.