NIFTY has support at 6250 and face stiff resistance near 6320 - Microsec

After opening on a subdued note, the benchmark Nifty rose to make a high of 6302.75 and then it fell to make a low of 6259.45 yesterday. At the end of day Nifty closed at 6278.90. It had a net loss of 10.50 points or 0.17% over the previous day's close. On the sectoral front, some buying interest was witnessed in IT, Power, Banking and Metal stocks. However, Realty, Auto and Health care stocks traded marginally lower.

The Nifty has given a pullback rally of almost 7.4 percent from its recent low of 5972.80 made on 22nd November, 2013. Now it is likely to trade in the range of 6100 and 6360. If Nifty breaches 6100, it may further go down and take support near 5970. However a breach of 6360 would open the gate for 6500 in the extreme short term. We recommend holding long positions with stop loss of 6100.

On an intra-day basis Nifty has a support at 6250 and is likely to face a stiff resistance near 6320. If Nifty breaks 6250, it may further go down to 6210 and then 6160. However, if it is able to sustain above 6320, the level of 6370 – 6420 would become the next target.

Source : Equity Bulls

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