NIFTY has support at 5840 - Microsec

After giving a gap up opening, the Nifty continuously rose to make an intra-day high of 5904.85 yesterday. At the end of day Nifty closed at 5896.75. It had a net gain of 216.35 points or 3.21% over the previous day's close. The buying was witnessed across the board, However, Auto, FMCG, Power, Capital goods and Consumer durable stocks were on the buyers' radar.

After making a low of 5118.05 on 28th August, the Nifty has given a smart pullback rally of almost 15 percent in a time span of just nine trading sessions. Yesterday the bulls were able to manage Nifty above its crucial resistance of 5850. So we expect this rally to continue to 6080. However, a breach of 5770 is likely to take Nifty lower to 5600 in the extreme short term.

On an intra-day basis Nifty has a support at 5840 and is likely to face a stiff resistance near 5920. If Nifty breaks 5840, it may further go down to 5810 and then 5770. However, if it is able to sustain above 5920, the level of 5980 - 6020 would become the next target.

Source : Equity Bulls

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