Nifty closes higher on short covering - Karvy

The Nifty opened higher around the 5990 mark. It took strong support at 5970 levels and did not breach it in day's trade. In the latter half of the session, the index witnessed aggressive short covering and managed to touch the 6050 mark. The index is now trading at weekly highs despite underperformance in other key indices. This can be attributed to a few frontline heavyweights which are trading at lifetime highs. The index saw a strong rally in the last few minutes of trade after it broke past the 6000 mark. The Banking index also staged a major recovery from the lows, rallying over 4%. As long as the Index stays above the support level of 5920, the prevailing uptrend from the lows of sub-5600 is intact and further gains towards 6200 and higher remains open in the weeks ahead.

Among technical indicators, the 14-Day and hourly RSI are in strong buy mode expecting further upside in the index in coming sessions. This shall keep the Index on a firm note as long it holds the support levels of 5970 and 5920.

Source : Equity Bulls

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