With 6700 & 6800 PE having maximum OI of 69 Lakhs & 43 lakhs respectively & along with 6700-6800 Call having an OI of 35 & 48 Lakhs respectively, 6710-6730 is the immediate support.
Till Nifty holds 6710-6730, it can move on the upside till 6860-6900. Below 6710, would pave the way for a short term correction upto 6650-6620.
Weekly Range could be 6710-6890.
Technically, Technical Oscillators RSI, Stochastic & MACD are placed above their respective averages on weekly charts while being placed below its average on the daily charts. RSI & Stochastic are placed in overbought zone on the weekly. All these conditions may lead the index to witness some profit booking from higher levels in the next few sessions.
Focus has shifted to the quality mid-caps & small-caps where the next round of wealth is being created. Now it is all the more important to be very stock specific as in the forthcoming 2-3 Weeks, the political uncertainty increasing day by day during the ongoing Lok Sabha Elections & its possible outcome on May 16, 2014.
Movement of the Markets would be dictated by FII Fund Flows, Global Market Trends, forthcoming India Q4FY14 Corporate results along with future earnings guidance, news-flow about the Ongoing Lok-Sabha elections, movement of Rupee against the Dollar & crude oil price movement.