NIFTY likely to move in the range of 5250 and 5600 - Microsec

After starting with a red session, the NSE-50 share index benchmark Nifty fell to make a weekly low of 5118.85 on Wednesday. However a sharp pullback rally was witnessed from Thursday and Nifty rose to make a high of 5493.30 on Friday. At last it ended the week at 5471.80.

On the sectoral front, some buying interest was seen in Information technology and Health care stocks. However, Consumer durable, PSU, Banking, Realty stocks traded lower.

Now, the immediate crucial resistance is at 5530 and a breach of this level would open the gate for 5650.

After starting with a red session, the benchmark Nifty fell to make a weekly low of 5118.85 on Wednesday. However a sharp pullback rally was seen from Thursday and Nifty rose to make a high of 5493.30 on Friday. At the end of week Nifty closed at 5471.80. On the sectoral front, some buying interest was seen in IT and Health care stocks. However, Consumer durable, PSU, Realty and Capital goods stocks traded lower.

The Nifty has given a smart pullback rally of almost 7 % in last three trading sessions. Now it is likely to face a stiff resistance near 5530. If Nifty is able to maintain above this level an upward rally might carry it to 5650 and then 5780 in the extreme short term. However a breach of 5250 is likely to take Nifty lower to 5100.

For the coming week, first support of Nifty is at 5400 and the resistance is 5530. If Nifty breaks 5400, it may further go down to 5320 and then 5250. However, if Nifty is able to sustain above 5510, the level of 5600-5650 would become the next target.

Source : Equity Bulls

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