Nifty opened negative and remained under selling pressure for the entire session. It ended the day with a loss of 48 points at 5445. Despite the negativity Nifty managed to remain above the important support of 5400. We have been maintaining a bearish view on Nifty since past one week and continue to remain firm on the same till the time Nifty trades below the level of 5600. For Monday’s trade the level of 5400 is a critical support. For Nifty, should it breach that it may further correct sharply till 5340 to 5310 range. Overall analyzing the corrective structure the February 2011 lows may be revisited over the coming few weeks. On any bounce back attempts Nifty may face resistance near the level of 5500. One must remain very careful with long positions and have a stop loss of 5400 in place.
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