|Nifty stuck in a range. The level of 5190 is a critical resistance whereas 5029 is the floor for this trading range.
Despite opening highly negative with a gap Nifty managed to recover majority of its losses but still concluded the day with a minor loss of 19 points at 5146. Amongst the sectoral indices the BSE Realty and Auto indices were the outperformers whereas BSE CG and Metal indices lost the most.
A gap down opening was readily bought into buy traders and Nifty inched its way higher. Despite the high volatility Nifty did manage to erase most of the losses but still concluded in the red losing 19 points. Going forward the range of 5180 to 5190 continues to remain a stiff resistance for Nifty. If it manages to surpass this resistance range; we may see further upside till 5250 and beyond that 5300 is a possibility over the coming few days.
On the down side the level of 5100 is an important intraday support.A breach of this level may indicate weakness till 5030 which is an important support for Nifty. Thus Nifty appears to have turned range bound and an either side break out above 5190 or 5100 initially and 5030 (later for further confirmation) would provide us with some short term directional cues.