After opening almost flat nifty continued
yesterday's southward journey before taking support near lows of april 2013 and
recovered to 5600 finally closing at 5554. The pull back rally can stretch upto
5640-5680. 5680 is now going to be major hurdle for any pullback attempt. Any
recovery towards this zone should be used as selling opportunity. Once again we
saw the index management with major index supporter IT index witnessed weakness
as it was in the extreme overbought condition, whereas laggards of past few
days bankindex was doing well.
We can expect market to pullback to 5640-80
as the indicators are in the oversold zone with one caution i.e. index can fall
with oversold condition and at such times the market moves are very sharp. So
below 5480 one should be more cautious.
Nifty Sup : 5510-5480 Res : 5590-5640
Above 5810 will have to relook at the view
again.
