Nifty closes strongly at 4936 - PINC Technical Report

Nifty (4936 – up 104 points)

Aided by positive sentiments, the Nifty had a robust opening but remained sideways with a negative bias for the remainder of the session. The Nifty still closed the day strongly at 4936, up 2.17%.

On the back of positive news, the global markets provided a solid platform for our local markets in today's trade. Nifty's firm opening at around 5000 ensured that the zone of resistance between 4850 - 4959 is decisively breached. This upmove was in line with our earlier view where we had clearly stated that the markets are oversold and due for a breather. Hence, the Nifty's short-term uptrend remains intact and a breach above 5000 can result in further advances towards the 5050 - 5100 level. On the downside, 4850, which had earlier acted as a resistance, should now offer a good support. Even though the Nifty has rallied by over 300 points from the lows of 4650, our medium term outlook remains neutral. We prefer to wait and watch for further development over the short term before considering any change to our medium term view. However, any odds for a drastic fall are appearing bleak.

The CNX Midcap found support from 6600 and today rallied to touch a high of 6800. Its uptrend is also intact and further advances can see it reach near the psychological level of 7000.On the downside, support should now emerge at 6650 - 6700 zone.

Source : Equity Bulls

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