|Nifty staged an impressive bounce back, yet it has to confirm a trend change by sustaining above 4960.
Nifty opened with a gap on the downside but recovered rapidly throughout the latter half of the session to conclude with a gain of 21 points at 4891. Amongst the sectoral indices the BSE Bankex and FMCG indices were the outperformers whereas BSE Auto index lost the most.
Nifty opened highly negative but bounced back from sub 4800 levels to erase all its losses and concluded at 4891. After several days now there are some initial signs of strength, however as long as Nifty is unable to cross the level of 4960 the change of trend to positive cannot be confirmed.
In the immediate term, now the level of 4800 would serve as a support for Nifty. If Nifty manages to sustain above 4800 and clear the level of 4960 then we may see further upside till at least 5120. However in the absence of such confirmation of a break out above 4960, we still advise refraining from long positions. On the downside if Nifty breaches the level of 4800 then we may see further fall till 4700 to 4650 levels.