Nifty trades with weak bias towards support at 5535 - Aditya Birla Money

Nifty traded with weak bias towards advocated support at 5535.

With the sharp fall seen last week the index has closed down by 143 points forming a Rejected Bearish candle indicating strong selling pressure at higher levels.

While the index is hovering above channel support, there is no sign of any reversal yet. The index will be achieving equality with its prior leg of fall at 5525 zone; if prices are able to find support, the index could stabilise/consolidate and thereafter witness an up move towards 5750-5800 levels.

Failure to do so and a subsequent breach below 5500 would lead to breakdown from the falling channel indicating further weakness towards 5400/5300.

For the day, resistance at 5580 is crucial; as long as it holds the index is likely to trade with negative bias. If on the other hand 5580 is breached, the index could witness an up move towards 5650 levels.

Support at 5525-5500 crucial; sustenance above it is essential for the index to stay positive in the short term.

Source : Equity Bulls

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