5740 - 5780: Strong Resistance Zone for Nifty Futures - GEPL Capital

Nifty Futures closed at 5717 which is 13 points lower than its previous close of 5730.

Nifty Futures formed intraday bottom at 5678 but managed to close above 5700 mark.

The trend is still in the downward direction and the zone of 5740 - 5780 is likely to provide strong resistance.

A breakdown of 200 - EMA at 5665 will result in a sharp slide and the positional target for Nifty Futures is placed at 5550.

The earlier sign of weakness will be seen if Nifty Futures trades below 5690 and breakdown will be confirmed below 5665.

Short selling is advised either below 5690 or near 5740 with the stop loss of 5790 with positional target of 5550.

A strong bearish candle on weekly chart is suggesting to avoid bottom fishing in the stocks as the trend is strongly bearish.

As long as Nifty trades below 6000, the current intermediate trend will be in downward direction.

The intraday resistance levels for Nifty are placed at 5740 & 5780 where as the intraday support levels are placed at 5690 & 5650 respectively.

Source : Equity Bulls

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