NIFTY drops 62.90 points to close at 5851.20 - Microsec

After opening on a shaky note, Nifty traded in the negative territory throughout yesterday's trading session. At the end of day Nifty closed at 5851.20. It had a net loss of 62.90 points or 1.06% over the previous day's close. On the sectoral front, selling pressure was witnessed in Banking, IT, PSU, Auto and Consumer durable stocks.However, FMCG stocks traded marginally higher.

The daily chart of Nifty is showing that it has given a pullback rally of almost 5.4% since five 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 5800 and is likely to face a stiff resistance near 5890. If Nifty breaks 5800, it may further go down to 5780 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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