|The level of 4970 is now a key resistance.
After days of closing negative, Nifty managed to end with a modest gain of 35 points today. Amongst the sectoral indices the BSE CG and Metal indices were the outperformers whereas BSE FMCG index ended the day on a negative note.
Nifty ended with a gain of 35 points at 4942. The trend continues to appear weak till the time Nifty trades below the level of 4970. It now has an important support placed at 4880. Any major breach of this level may give rise to further sell off which may take it down to 4800 and below that 4750 is also a possibility.
However if Nifty manages to take support above 4880 and surpass the level of 4970 then we may see further recovery which may take it higher till 5050. In the absence of any confirmed signals for buying, we advice refraining from any long positions till Nifty clears the level of 4970. We also recommend a strict stop loss of 4850 for any existing long positions