Technically, Nifty breached the vital sentimental resistance level of 6,045 but not able maintain it on the basis of closing. It closed just below the above level and closed at 6,035. Due to the good buying coupled with short covering, Nifty made good strides in northward direction. For the day, Nifty has registered its PCR level at 1.01 against 1.28 as of previous trading session. Because of buying support at lower levels, Nifty ably maintained its closing above the vital 9 & 14 day's SMA placed at 5,952 & 5,855 and surpassed 50 and 100 day's SMA placed at 5,562 and 5,366 with a good margin; these levels may act as new supports, in coming sessions.
The technical charts and reports are not favouring further rise as the pattern, indicators, market breadth are suggesting a correction in the Nifty in the short term. We therefore would not advise to go long on Nifty and wait for correction, first till 5,800. The correction could drag the index till 5,800 where it would find some Buying support. The daily, weekly and hourly charts are in over bought zone and therefore we expect consolidation in 6,040-5,800 range in the Nifty.
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