NIFTY OUTLOOK FOR TUESDAY 2-JUNE-2015

“Buy LT Future above 1715 Tgt 1722/1732 Sl 1702”

“Sell DLF Future below 118 Tgt 116.80/114.20 Sl 121.40”

Today market was consolidating throughout the day. Bears and bulls remained indecisive today as indices ended the day on a flat note.  The market has ended flat ahead of RBI monetary policy review tomorrow. The Sensex was up 20 points at 27848 and the Nifty was down 0.25 points at 8433.Now all eyes are on the RBI credit policy which will be announced by tomorrow on 2nd june. As the clamour for a rate cut intensified. The bankers, bond dealers and economists expect a 25 basis-point repo rate cut while SLR and CRR rates are expected to be kept unchanged.

Markets seemed to keenly wait for the rate cut by RBI in its policy scheduled on Tuesday 2 June 2015,on one hand and weak monsoon prediction on the other threw mixed bag of sentiment on the bourses. Few auto industry monthly sales numbers failed to cheer the street.

Other than the negative impact from Sun Pharma, market has floated ahead in hope of a rate cut. A cut of 25 basis points is the most likely consensus. The immediate momentum of the market will depend on Tuesday's event outlook, equity market has high expectations from the event, a cut with hawkish view will not be welcomed by the market."It appears from daily chart that stock is forming the “Cup and handle” pattern and likely to give the breakout of same.

For Nifty 8550 can act as a good resistance for coming days. Any breakout of same can add further buying up to 8650 levels. On the lower side, 8270 are seen as good support for near term, breakdown can open the door for further downside by 8070 level.
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RESISTANCE: 8470, 8520, 8570

SUPPORT:  8420, 8370, 8320