With Narendra Modi set to be PM, 'each 20-30-pt dip in Nifty is buy'

Updated: May 24 2014, 23:18pm hrs
ModiThere are expectations that Narendra Modi will be in a position to power economic growth.
After Bharatiya Janata Party (BJP) led National Democratic Alliance's (NDA) landslide victory in the recently concluded Lok Sabha election, investors are expecting measures from the incoming government to revive the Indian economy. There are expectations that Narendra Modi will be in a position to power economic growth.

Modi will be sworn in as India's next Prime Minister on Monday, 26 May 2014, evening at the Rashtrapati Bhawan. The first budget of the new government is expected by July 2014.

The Reserve Bank of India (RBI) next undertakes monetary policy review on 3 June 2014.

Asian stocks edged higher on Friday, 23 May 2014, on signs of growth in the world's largest economies.

After a flat weekly start Indian benchmark index Nifty May fut was trading with sideways movement, and slight upside movement was seen on the last day of weekly session and managed to close at 7388.

Nifty May future is further looking bullish on chart, as mentioned in our previous report that every 20-30 points dip in Nifty is buy. We suggest traders to adopt same strategy again.

Currently, Nifty is hovering around 7380-7400 levels , if it again comes around 7305 level, traders should use this dip & add further long position in portfolio for the target of 7470 and 7550. While on lower side it has a strong and immediate support of 7270

Stocks to watch on:

TATA MOTORS DVR IN NSE CASH BUY-The major trend of the stock is bullish. It is trading above its 10 and 50 days moving averages and below its resistance level of 257.50, Stock is likely to continue its bull rally with the crossing of its resistance level. One can initiate the long position in the stock above the resistance level for the target of 267.50, for which one has keep strict stop loss of 247.50.

GODREJ INDUSTRIES IN NSE CASH BUY-The stock is consolidating on charts after showing buying from the support mark. It is likely to show further upside move with the crossing of its resistance level of 317. Traders can the target of 327 with the crossing of it resistance level for which one has to keep stop loss of 309.

By Vivek Gupta, Director Research, CapitalVia Global Research Limited