Nifty closes up 57.75 points at 5908.95 - Microsec

After opening on a shaky note, Nifty fell to make a low of 5791.75 and then it continuously rose to make a high of 5920.15 yesterday. At the end of day Nifty closed at 5908.95. It had a net gain of 57.75 points or 0.99% over the previous day's close. On the sectoral front, Realty, Banking, Metal, Oil & gas and Capital goods stocks were on the buyers' radar. However, Consumer durable stocks traded marginally lower.

The daily chart of Nifty is showing that it has given a pullback rally of almost 5.4% since ten days. 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 5870 and is likely to face a stiff resistance near 5890. If Nifty breaks 5870, it may further go down to 5840 and then 5790. However, if it is able to sustain above 5920, the level of 5950 - 5980 would become the next target.

Source : Equity Bulls

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