Nifty closes up with gain of 21.85 points - Microsec

After opening on a subdued note, the benchmark Nifty rose to make a high of 5720.95 and then it fell to make a low of 5675.95. At the end of day Nifty closed at 5704.40. It had a net gain of 21.85 points or 0.38% over the previous day's close. On the sectoral front, some buying interest was witnessed in Realty, Power, Banking, Health care and Capital goods stocks. However, Metal, Auto and FMCG pack traded marginally lower.

The daily chart of Nifty is showing that it has given a correction of almost 6.2% since last twenty days. Now it is expected to get a strong support in 5600-5540 band. 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 5640 and is likely to face a stiff resistance near 5720. If Nifty breaks 5640, it may further go down to 5600 and then 5540. However, if it is able to sustain above 5720, the level of 5750 - 5790 would become the next target.

Source : Equity Bulls

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