The Indian market rose sharply on Friday, as investors cheered state poll results and solid data on industrial output and exports allayed fears of a slowdown in the economy. The Assembly poll results showing a victory for the ruling Congress-led coalition in most of the states and the loss of Left parties in West Bengal and Kerala raised expectations that long-pending reforms in the financial sector would be pushed through.Near term outlook for market is positive if Nifty sustains above 5620 and a deep support exists at 5450. Thus to take benefit from market make money like other traders who are using accurate stock tips and have made daily money making a habit in the stock market. The Bank Nifty is below its 20 and 50 and 200 DMA (all between 11,000- 11,300). The next support is at 10,650 and if that gets broken, it could head towards 10,300.
Elections Impact on Indian Stock Market
The political picture has changed with the Left exiting from West Bengal and Kerala, the DMK from Tamil Nadu, the Congress staying on in Assam. West Bengal and TN threw up the most decisive mandates, the most important since the 2009 general election. Mamata Banerjee ended the Left Front's 34-year uninterrupted rule with an estimated 214 seats in the 294-member assembly, J. Jayalalithaa's AIADMK won an emphatic victory over the DMK in TN with leads in 202 seats in the 234-member house. In Assam, the Congress government was headed for its 3rd consecutive term with 79 seats in the 126-member house. Kerala was a close call, with the Congress-led United Democratic Front scraping through with 72 seats, just four above ruling Left Democratic Front's (LDF) 68. On the lighter side, with such massive victory for ladies, do we require a women reservation bill. Now since a clear mandate has come, it will give a push to reforms which were hard to execute earlier and market have welcomed the mandate. On the other hand foreign institutional investors (FIIs) do not give much importance to Assembly election results and thus it may not have an impact on FIIs inflow. Thus we can say that the state elections will not change the trajectory of the markets and Friday’s rally being purely driven by short covering.The 5,600-mark looks like an upside in short term and we may again see Nifty touching 5450 during the week. Sensex 18200 is an important level as it is near 61.8% correction level of the move from 17300 to 19800 and thus if Sensex breaks below 18200 level, we may see Sensex falling to 17500-17800.Mamata Banerjee, Trinamool Congress Chief has stated and we quote "People finally got freedom. There will be end to autocracy and atrocities. This is the victory of people against years of oppression."
Commodity Market Update
Meanwhile, after drifting lower in early Asian trading, crude prices for June delivery were last trading up about a percent near $100 a barrel in response to a weaker U.S. dollarConsolidation in Business – A wise move
Many traders may not know that Software exporter Wipro was initially a vanaspati selling brand and later on moved in this software/outsourcing segment. Now it has decided to sell its diaper and vanaspati business as now IT is its core business and one has to consolidate to remain at top. Markets always cheer consolidation news and stock was rewarded on Friday.Click Here to Get Free Stock Market Tips in Email
Support and Resistances for the Day
| Indices | Support | Resistance |
| Nifty | 5450 | 5632-5700-5750 |
| Stock | Profit (Rs) |
| Tip | 1940 (Rs 50,000 Trading) |
Intraday Trading Tips
| Share | Gains (Rs) |
| Tips | 38970 |
Future and Options Daily Paid Tips
| NSE Nifty 50 Stocks | Made Money (Rs) |
| Tipz | 57680 |
Strong future shares at National stock exchange
Exide Ind, Hind Uni Lvr, Bata India, OFSS, Ranbaxy, DCB, India Info, Hero Honda, Max India & Glaxo.
Weak future stocks at NSE
Patni, Renuka, SRE Infra, LITL, Bank Of India, GT Off Shore, On Mobile, IDFC, Jindal Saw & Vijaya Bank.
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