Nifty has support at 5480 for the day - Finquest

Nifty started the week on a firm note and edged higher to hit an intraweek high at 5721 but herein encountered resistance. Index thereon reversed direction towards down and steeply plunged marking intraweek low at 5486 wherein it took support witnessing a rebound, before settling the week down by ~2% at 5565 levels.

During the week, weakness persisted as Nifty made a fresh 4-month low thus forming bearish weekly candle. Nifty though rebounded from the weekly low but the outlook remains negative as long as it trades below 5630. Thus the view remains intact that holding below 5630 would continue the weakness whereby support on lower side is seen at 5540 followed by 5480. Only a sustainable move above 5630 could invite bounce towards 5675 levels and higher.

Nifty for the day has support at 5540, breach of which could drag index lower towards 5510-5480 levels. Towards upside 5585 would act as resistance, above which it could edge higher towards 5630- 5670 levels.

Resistance on upmove is seen at 5630, move above which would enable Nifty to edge higher, else would remain weak.

Source : Equity Bulls

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