Nifty likely to move in the range of 6370 and 6130 - Microsec

After opening with a flat session, the benchmark Nifty fell to make a weekly low of 6259.45 and then it rose to make a high of 6324.90 on Friday. At the end of week it closed at 6313.80. It had a net gain of 0.63% over the previous week's close. On the sectoral front, Realty, Capital goods, Banking, Power and Consumer durable stocks were on the buyers' radar. However, Auto stocks traded marginally lower.

After making a low of 5972.80 on 22nd September, 2013, Nifty has given a pullback rally of almost 7.4 percent. Now it is likely to trade in the range of 6130 and 6370 in the short term. If it is able to maintain above 6370 level, an upward rally might carry it to 6420 and 6500 in the extreme short term. However the support of 6130 is very crucial and a breach of this level is likely to take Nifty lower to 5970. We recommend holding long positions with stop loss of 6130.

For the coming week, first support of Nifty is at 6250 and the resistance is 6370. If Nifty breaks 6250, it may further go down to 6170 and then 6130. However, if Nifty is able to sustain above 6370, the level of 6420-6500 would become the next target.

Source : Equity Bulls

Keywords