|The level of 5200 is now an important support.Nifty lost 88 points on the initial day of the new trading week and ended at 5234. Amongst the sectoral indices the BSE Metal and CG indices lost the most whereas BSE HC index was an outperformer in a falling market..
We had recommended profit taking near the level of 5400 for Nifty. It however was unable to test the level of 5400 and made a high of 5378 and reacted downwards last week. We had also recommended a stop loss of 5275 for any long positions which did get triggered in today’s fall. Now the level of 5200 is an important support for Nifty.
As long as Nifty sustains above 5200 there are chances of further upside but the level of 5300 and beyond that 5355 would act as resistance for Nifty. Only in case Nifty manages to sustain above 5355 we may see a sharp upmove which may take it beyond 5400. However if Nifty fails to maintain above 5200 then we may see further downside till 5050.