NIFTY closes at 5592.95, up 144.85 points - Microsec

After giving a gap up opening, the Nifty continuously rose to make an intra-day high of 5625.75 yesterday. At the end of day Nifty closed at 5592.95. It had a net gain of 144.85 points or 2.66% over the previous day's close. On the sectoral front, Banking, Realty, PSU, Capital goods and Consumer durable stocks were on the buyers' radar. However, IT and Health care stocks traded lower.

After making a low of 5118.05 on 28th August, the Nifty has given a smart pullback rally of almost 9.90 percent in five trading sessions. Yesterday the bulls were able to manage Nifty above its crucial resistance of 5580. So we expect this rally to continue to 5750. However, a breach of 5420 would indicate the end of current rally and in that case Nifty may test 5200 in the short term.

On an intra-day basis Nifty has a support at 5540 and is likely to face a stiff resistance near 5630. If Nifty breaks 5540, it may further go down to 5500 and then 5420. However, if it is able to sustain above 5630, the level of 5690 – 5750 would become the next target.

Source : Equity Bulls

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