|Nifty has strong support placed at 5200. Till the time 5200 is intact it has the potential to test 5400 – 5440 range.
Nifty opened negative and traded in the red for the entire session to conclude the day with a loss of 41 points at 5275. Amongst the sectoral indices the BSE IT and Teck indices were the outperformers whereas BSE Metal index lost the most. All the sectoral indices gave a negative close however.
We had indicated the level of 5440 as the positional target for Nifty and continue to maintain the same. However in the immediate term if it pierces the support of 5270 then we may see further decline till 5250. The level of 5200 has now emerged as a strong support and we recommend that traders place a positional stop loss of 5190 for all Nifty long positions.
Despite the current decline if Nifty manages to sustain above 5190 in next couple of sessions then it may test the target of 5400 – 5440 over next few days. On the higher side it now has immediate resistance placed at 5340. Sustenance above 5340 would confirm further upside till 5400 and higher.