Nifty up 44.70 points at 5863.30 - Microsec

After opening on a shaky note, Nifty traded in the range of 5800 and 5820 maximum hours of yesterday's trading session. However, a pullback rally was witnessed towards the afternoon session and it continuously rose to make a high of 5878.00. At the end of day Nifty closed at 5863.30. It had a net gain of 44.70 points or 0.77% over the previous day's close. On the sectoral front, Realty, Information technology, Capital goods and Banking stocks were on the buyers' radar. However, Metal, PSU and Consumer durable stocks traded marginally lower.

The daily chart of Nifty is showing that it has given a pullback rally of almost 3.8% since last three successive trading sessions. Now it is expected to face a stiff resistance near 5980. If Nifty is able to maintain above 5980, an upward rally might carry it to 6120 in the extreme short term. However, a breach of 5750 would indicate the end of current rally and in that case Nifty may test 5650 and then 5540 in the short term. We recommend holding long positions with stop loss of 5750.

On an intra-day basis Nifty has a support at 5830 and is likely to face a stiff resistance near 5890. If Nifty breaks 5830, it may further go down to 5800 and then 5750. However, if it is able to sustain above 5890, the level of 5930 - 5980 would become the next target.

Source : Equity Bulls

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