Nifty holds above crucial support at 5600 zone - Aditya Birla Money

NIFTY traded weak initially however was able to hold above the crucial support at 5600 zone viz lower band of falling channel and 200 day moving average.

As long as the support at 5600 holds, the index could consolidate between 5600 and 5800 in the coming few weeks before any further significant fall.

Post the sharp bounce seen in expiry session, the index could witness some consolidation/correction towards 5650-5630; post which the index could once again edge higher towards 5750-5800 levels.

Daily momentum too has given a positive crossover from oversold zone indicating that any fall now is likely to witness good buying interest.

Only a decisive breach and close below 5600 would negate the expectation of consolidation turning the sentiment negative towards 5530 qlevels.

As long as support 5600 holds, the index is likely to trade with positive bias towards 5800 in the coming week.

Source : Equity Bulls

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