Nifty has intra-day support at 5600 - Microsec

Yesterday we have seen a very volatile movement of Indian equities. After giving a gap up opening, the benchmark Nifty rose to make a high of 5718.40 and then it continuously fell to make a low of 5624.40. At the end of day Nifty closed at 5633.85. It had a net loss of 17.50 points or 0.31% over the previous day's close. On the sectoral front, selling pressure was witnessed in Auto, Metal, Banking, FMCG and Capital goods stocks. However, Realty, Power, Oil & gas and PSU stocks traded marginally higher.

The daily chart of Nifty is showing that it has given a correction of almost 5.8% since last fifteen days. Now it is expected to get a strong support near 5540. If it breaches this level, it may further go down to 5450 in the short term. However, a breach of 5750 would indicate the reversal of current trend and in that case Nifty may test 5980. Traders are advised to maintain stop loss at 5540 of all long positions.

On an intra-day basis Nifty has a support at 5600 and is likely to face a stiff resistance near 5680. If Nifty breaks 5600, it may further go down to 5570 and then 5540. However, if it is able to sustain above 5680, the level of 5720 - 5750 would become the next target.

Source : Equity Bulls

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