Nifty has support at 5540 on intraday basis - Microsec

After opening on a shaky note, the benchmark Nifty fell to make a low of 5500.30 and then it rose to make a high of 5592.85 yesterday. At the end of day it closed at 5568.40. It had a net gain of 39.85 points or 0.72% over the previous day's close. On the sectoral front, some buying interest was seen in Oil & gas, FMCG, Banking and Capital goods stocks. However, Auto, Power, Health care, Metal and Consumer durable stocks traded lower.

The daily chart of Nifty is showing that it has given a correction of almost 8.10% since last one month. We expect this downward movement of Nifty to continue to 5440. If it breaches this level, it may further go down to 5370 and then 5250 in the short term. However, a breach of 5650 would indicate the reversal of current trend and in that case Nifty may test 5750 and then 5980.

On an intra-day basis Nifty has a support at 5540 and is likely to face a stiff resistance near 5620. If Nifty breaks 5540, it may further go down to 5500 and then 5470. However, if it is able to sustain above 5620, the level of 5650 - 5720 would become the next target.

Source : Equity Bulls

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