Market ahead week beginning 28 April

Last week our prediction of NIFTY was perfect. Markets seem to b heading further up in May as of now. However, for this week, we advise some caution. There is an RBI monetary policy meet on the 29th of this month which could influence the market. So we will wait and watch how market reacts to RBI's policies. For monday, we could have a slight dip due to profit booking at higher levels. However, this will still be a regular correction in this new uptrend. We have a breakout on nifty charts and this breakout is likely to be sustained for sometime.

The following are important NIFTY supports - 5070, 5000. Its unlikely that we will go below these on monday. Some important stocks and their supports/resistances

CAIRN - 268, 255, 251, 246, 237. Close below 255 is very bearish for CAIRN. It has formed a double top on daily charts (bearish sign)
SBI - 1754 is laxman rekha. For monday short SBI with a stop above 1754. Target 1710, 1680
SUZLON - SELL below 284. Target 275, 268

CAUTION: Though index is looking bullish, some of the heavyweights including RIL, SBI and SAIL are looking come down. So be a little cautious in BUYING. Do not BUY at higher levels.

Today's strategy: SELL at highs and cover at dips