Nifty fails to breach past falling trend line - Aditya Birla Money

Nifty opened with a downside gap of 68 points and thereby failed to breach past the falling trend line resistance at 5620.

Support at recent low at 5477 is crucial; as long as it holds the index seems likely to trade with positive bias towards 5600 levels.

At 5620, the index is facing strong resistance from falling trend line formed joining prior highs. Thus breach and sustenance above 5620 is essential for the up move to continue towards 5700-5720 levels.

Failure to breach past 5620 would keep prices stuck in a range between 5600 and 5500.

Daily momentum has given a positive crossover after forming a positive divergence indicating that any dips is now likely to find good support.

As long as recent low at 5477 holds, Nifty seems likely to trade with positive bias towards 5600 levels.

Source : Equity Bulls

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