NIFTY closes down 36.45 points at 5813.60 - Microsec

Yesterday we have seen very volatile movement of Indian equities. After opening on a shaky note, the benchmark Nifty rose to make a high of 5863.40 and then it fell to make a low of 5804.30. At the end of day Nifty closed at 5813.60. It had a net loss of 36.45 points or 0.62% over the previous day's close. On the sectoral front, some selling pressure was witnessed in Power, Banking, PSU, Capital goods and Consumer durable stocks. However, Metal and IT stocks traded marginally higher.

Nifty has corrected almost 8.75% from its recent high of 6229.45 made on 20th May. Now Nifty is likely to move in the range of 5650 and 5980 in the short term. If it breaches 5650, it may further go down to 5520 and then 5440 in the extreme short term. However, a breach of 5980 would indicate the reversal of current trend and in that case Nifty may test 6125 and then 6250 in the short term. Traders are advised to maintain a stop loss at 5650 of the long positions.

On an intra-day basis Nifty has a support at 5750 and is likely to face a stiff resistance near 5870. If Nifty breaks 5750, it may further go down to 5720 and then 5660. However, if it is able to sustain above 5870, the level of 5910 - 5980 would become the next target.

Source : Equity Bulls

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