Despite a positive start Nifty was unable to sustain at higher levels and quickly drifted down as the session progressed. The selling intensified towards the end of trade and it ended with a loss of 83 points at 5604. We were of the opinion that one must not take either a long or short position till Nifty breaks out of the confines of a 180 points range. Today it closed below 5630 and thus our sell call was enforced. Going forward one must remain short even if it bounces by 30-50 points placing a stop loss slightly above 5725. On the downside there is a distinct possibility that Nifty may come down to 5540 and lower. Overall it is now approaching a critical support of 5450. Sustenance above 5450 is critical and a breach of that would indicate a weakening of medium term uptrend.
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