Nifty likely to consolidate in range between 5600 and 5500 - Aditya Birla Money

Nifty traded in a volatile manner; opening with an upside gap but then failing to sustain and falling to make new lows only to bounce back sharply to close in the green.

For the day support at 5530 is crucial; a breach below would lead to index correcting once again towards 4.780.

On the other hand if the support holds, the up move could continue towards 5600 levels. On the higher side falling trend line is posing strong resistance at 5600 zone. Failure to breach the same would keep prices subdued towards 5500 – 5480.

Daily momentum has formed a positive divergence with prices by not confirming the new lows. However further price confirmation (follow through buying) would be needed to conclude that a short term bottom is in place.

Nifty is likely to consolidate / trade in a range between 5600 and 5500.

Source : Equity Bulls

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