NIFTY finally has managed to close above 3565 (exponential average) at 3593. Weak US market and Asian markets were negatively impacted the sentiments but still nifty got the constant support from 3550 levels. Ahead of election results investors were busy with closing down their big open positions. Exit polls suggest no major majority for UPA and NDA. We may witness another round of election due to hung Parliament. The implied volatility of Nifty options has crossed 50 marks, which may drop from tomorrow afternoon. According MET officials monsoon will be normal and it will start from May 26th. Monsoon and election results are the two key factors which can decide the market trends in the near term. If monsoon is on the right time fertilizer sector stocks may attract value buying. Nifty has strong support at 3510 and 3475 levels. Resistance at 3634, 3645 and 3687.
But keep in mind that the major support levels are 3510, 3359(200 DMA). If Nifty moves below this level it may test 3138 and 3010. Major resistance at 3720, 3750, 3800 and 3900. Above this major hurdle at 4100.
