Nifty opened weak and remained under selling pressure for rest of the session. It finally ended the day with a loss of 25 points at 5460. If it manages to sustain above an important intraday support of 5430 tomorrow and clear the stiff resistance of 5500 then it may scale up to 5525 followed by 5555 on the higher side. However it has formed “Dark Cloud Cover” on the daily chart which is a bearish sign, thus a breach of 5430 may drag it down to the support level of 5400. A decisive breach of 5400 may have further bearish implications for coming few sessions and it may drag the Nifty down to 5350. We maintain a cautious view at his juncture.
As for stocks we recommend going long in Shyam Tel, whereas Bajaj Auto appears weak on the chart.