Hold long positions with stop loss of 5870 - Microsec

After opening on a positive note, the Nifty rose to make a high of 6042.15 and then it continuously fell to make a low of 5977.15. At the end of day Nifty closed at 5988.40. It had a net loss of 27.75 points or 0.46% over the previous day's close. On the sectoral front, some buying interest was seen in Metal, Oil &gas, Health care and Information technology stocks. However, FMCG, Capital goods, Banking and FMCG stocks lead to a decline.

The daily chart of Nifty is showing that it has given a strong bullish rally of almost 8.20% in a time span of one and half month. The short term trend of Nifty is still looking positive. The immediate crucial resistance of Nifty is at 6030 and a breach of this level is likely to take Nifty higher to 6180 in the near future. We recommend holding long positions with stop loss of 5870. However the fresh long positions can be initiated only above 6030.

On an intra-day basis Nifty has a support at 5950 and is likely to face a stiff resistance near 6030. If Nifty breaks 5950, it may further go down to 5900 and then 5870. However, if it is able to sustain above 6030, the level of 6080 – 6120 would become the next target.

Source : Equity Bulls

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