Nifty opened with a positive gap on positive cues from global markets & comfortably crossed the resistance of 2770 & continued its upward march to fill the opening gap of Thursday & touched an intra day high of 2835 before closing at 2828, about 91 points above the previous close. In this process, Nifty is having made a kind of "Double Bottom" having resistance at 2850, breakout from where may target 2975-3000 in next couple of sessions.
As far as, EST charts are concerned, Nifty has taken a pullback move after breakout from 2800 & it has made "Double Bottom" pattern around 2710. In case, Nifty breaks the resistance to Re-enter the pattern it may move up further to touch level of 2975-3010 & failure to cross this level may result in decline to 2500 in coming sessions.
Sector wise, most of the sugar, steel, power, telecom, chemicals, select banking stocks were among the top gainers of the day whereas most infrastructure, media, cement, brokerage stocks were under selling pressure & declined during the day. As far as A/D data is concerned it was in favor of bulls in the ratio of 1.1:1 with 552 declines & 634 advances during the day.
In nutshell, Nifty is placed at crucial resistance of 2850, bullish breakout may target 2910 & 3010 in coming sessions whereas failure to cross this level may expedite the process of decline towards 2500 with hurdle at 2700.appears to be heading for 2500 & below . The best strategy would be to concentrate on mid cap stocks which have given bullish breakout in hourly charts & book profit in large cap overbought stocks which are showing weakness in short to medium term.
Nifty(Spot): Supports - 2696 / 2725 / 2754 / 2777 Resistances - 2835 / 2857 / 2887 / 2938
Nifty(Fut.): Buy near 2806 sl 2765 Targets 2862 , 2881
Or if trades below 2751 Sell Nifty sl 2790 Targets 2693 , 2672
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