As per the last session, Nifty has given bullish indications despite negative A/D data, with resistance at 5270 & bullish breakout from this level can take Nifty to 5325 & above. On the other hand, close below 5200 will pave way for Nifty to go below 5100 in coming sessions. The negative A/D data for last few days along with negative divergences in momentum oscillators favor caution in long positions as far as short term charts are concerned. On the other hand, bullish breakout inn many midcap stocks will keep the market volatile for days to come. Nifty opened on a positive note although US markets were flat & Asian markets were slightly positive. Nifty remained range bound throughout the day between 5267 & 5293 i.e. just 26 points on alternate bouts of buying & selling & closed almost at the opening levels i.e. 5282, almost 21 points above the previous close.
As far as, extreme short term charts are concerned, Nifty is close to the resistance of 5325 & breakout from where can take Nifty to higher levels of 5450-5500 in coming weeks but as a word of caution it must be kept in mind that A/D data is negative for last many days although Nifty is in uptrend & the momentum oscillators are also exhibiting negative divergences. All these factors can bring down Nifty to 5100 & 5000 in coming weeks.
Happy Trading...
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