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Below are Views On Bulls discarded the myth 'Sell in May and go away'  By Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking)

We had a flat start to the week today morning and in fact, in the initial trade, there was some mild negativity seen in the market. But similar to the recent trend, market absorbed the pressure and then resumed its upward momentum, once again led by the giant RELIANCE. As the day progressed, the buying momentum continued to first reach the new milestone of 15500 and in the final hour 15600 became the reality as well. Eventually, the Nifty ended the session with nearly a percent gains.

Undoubtedly the trend has been extremely strong since last few days and hence, the Nifty reached yet another millstone of 15600 before anyone could realise it. Since we are in an uncharted territory, there is no historic level to consider as a next resistance but taking few Fibonacci ratios into consideration, there is no major level visible before the magical figure of 16000. So practically, every 100 points move from hereon should be considered an intraday level in the northward direction. On the flipside, the support levels are very much defined which are now to be seen at 15400 – 15250.

We advise traders to trade with a positive bias and one should continue with the recent stock specific approach. It might sound a bit repetitive but it’s our duty to keep reminding that traders should not get complacent and follow a proper risk management now; because the low hanging fruit is already gone and in between we may see few bouts of profit taking which may look surprising if positions are overleveraged.

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