Downside continues, Nifty tested 7120

Market continued a pessimism as it gave negative closing for the third consecutive session. Today Nifty tried to maintain into green but last half an hour it witnessed profit booking and lost the positiveness.
Sensex lost 39.71 and Nifty50 slipped by 10.65 points and ended at 24194.44 and 7225respectively. Adjusted closings were 24217.34(-16.81) & 7229.95(-5.7). Among NSE Sectoral indices, CNX PSU Bank index which was down by 2.68% and Banknifty which turned to negative by 1.58% hit the market and pulled down the overall benchmark. Hindunilever was the top gainer among Nifty50 stocks, closed at 597.3 with up 7.34%. Bankbaroda was the top loser by 4.2%, closed at 840.
Advance Decline ratio was on negative side as 560 stocks gained and 604 stocks declined today on NSE. Tatamotors was the turnover topper by the quantity traded and ICICIBank by the traded value for today on NSE.

Nifty Outlook :
Market is wait n watch mood. Nifty tumbled nearly 386 points in this week(High of 7504 and today's low 7118.45). Nifty made a weekly high of 7504 in the very first day of the week and profit booking threw the market to settle at 7359 on the same day. May expiry (which contained 24 sessions which is usually on highest side after excluding 1st May and election holiday) resulted into winding up long positions as premium eroded from 35-45 points to 5 rupees at the time of today's clsoing. Nifty Fut ended at 7230 whereas spot Nifty ended at 7225. Nifty has set some resistances on its own in recent swings. Major support for the Nifty is at 7040 to 7000 levels. Q1 FY2014-15 results will be announced by 2nd June and new cabinet actions will guide the market direction.
Major Supports : 7040                                                                             Major Resistance : 7340 
Immediate Support : 7190                                                                        Immediate Resistance : 7270.