Trade long in Nifty if it crosses 5700 levels - Karvy

U.S. stocks rose on Thursday, with the S&P 500 index and the Dow industrials finishing at record highs as portfolio managers and other investors looked to get into equities as the first quarter came to an end. Asian stocks, during early trade fell, led by Japanese shares, after a central bank survey of sentiment among the country's largest manufacturers missed estimates and China's factory output expanded at a slower-than-expected pace.

For the day: Trade long in the Nifty if it crosses 5700 levels with a stop loss placed at 5670 for targets of 5730 and 5750 levels. Alternatively, trade short in the Nifty if it slips below 5650 targeting support levels.

The Nifty opened almost flat and traded weak in the early session to post a four-month low of 5605 level. Thereafter the Index traded sideways for the most of the session. In last hour it has spiked up sharply on account of short-covering on the expiry of March series. The key oscillators in the hourly chart are pointing upwards and hence further gains towards 5720 and 5750 levels is likely in the coming session. However, sustenance below its 200-Day EMA of 5650 level shall transform the prevailing intermediate-term correction (from January highs of 6112 level) into medium-term downtrend, which can take the Index towards 5500 and even lower over the ensuing months.

Among technical indicators, 14-Day RSI is flat but MACD is hovering below its zero-line. This shall keep prevailing weak tone intact by pressurizing the Index on any rises.

Source : Equity Bulls

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