Nifty opened negative but retraced all its losses as the session progressed. it finally ended the day with a gain of 13 points at 5536.Going forward it faces resistance near the level of 5600 and if it manages to surpass that level then it may surge higher by 50-60 points. In our view this entire range of 5600 – 5680 is a severe resistance zone and thus we advocate reducing long positions in case such an upside is seen. We view the entire advance since the February low as a part of a corrective rally which may terminate near the mentioned range and we may get to see another round of decline next week. On the downside important support level are placed at 5420 for next couple of sessions. A breach of 5420 would indicate weakness which may drag the Nifty down to 5360 which is the critical level to watch out for.
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