Nifty is likely to consolidate between 5,500- 5,600
Nifty started the day on negative note backed by weak cues from global arena. Nifty witnessed a high volatility during the
session. It initially moved higher, even above the 5,580 level but could not sustain it and moved lower to test 5,540 levels
after breaching 5,550 level again, It started upward journey and ended the day well above the crucial 5,550 mark.
Technically, last one month chart of Nifty has formed rising 'wedge pattern' which is bearish breakout, only if, lower trend
line break. Otherwise we can see rally up to 5,800.
Uptrend is expected to continue and volatility may be the order of the day for some more time and hence the investors are
suggested to trade cautiously. Technical momentum indicator, which is suggesting uptrend, could test its next major
resistances around 5,640 and if Nifty crosses this level, it can go further up, to test 5,700 level. On the downside, the levels of
5,400 will play major supports and any decisive fall below that could drag Nifty to its next strong support of 5,200. It is still
trading above its 8 & 34 days exponential moving average and its RSI is at 67 levels moving in the neutral zone, indicating
that there is some more upside potential left for it. Stochastic is currently moving near the overbought zone at 76 level on
the brink of showing negative crossover indicating downside. MACD is trading in positive zone showing positive divergence
also suggesting uptrend.
Stocks with short term Bullish Outlook:
STOCK S1 S2 R1 R2
BAJAJ AUTO 1734.8 1679.05 1825.5 1860.45
BPCL 336.5 327.7 351.1 356.9
Stocks with short term Bearish Outlook:
STOCK S1 S2 R1 R2
BHEL 213.77 211.38 219.77 223.38
GAIL 368.97 363.33 381.97 389.33
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