As already mentioned yesterday "Nifty is placed at crucial resistance of 2850, bullish breakout may target 2975+ in coming sessions whereas failure to cross this level may expedite the process of decline towards 2500 with hurdle at 2700. " Nifty opened on a flat note despite the fact that most of the World markets were trading in green. It remained range bound for more than 200 minutes, than gradually picked up to touch an intra day high of 2868 before falling to close at 2846, about 17 points above the previous close.
As far as, EST charts are concerned, Nifty is interestingly placed near a very crucial resistance of 2850 & any bullish breakout with volumes is capable of taking Nifty to 2910 & 3000 in coming days. On the other hand, it's failure to close above 2850 will pave way for bear assault which can take Nifty down to 2500 with strong hurdle at 2700.
Sector wise, most of the infrastructure, banking, select software stocks were among the top gainers of the day which closed in green whereas select auto, banking, infra, chemical were among the stocks which lost weight in absence of any buying during the day. As far as A/D data is concerned it was in favor of bulls in the ratio of 5:3 with 479 declines & 688 advances during the day.
In nutshell, Nifty is at crossroads having resistance at 2855 or so. Bullish crossover from these levels can target 2910 & 3000 whereas move below 2700 can take Nifty down to 2500 with major support at 2700. The best strategy would be to book profit in stocks which have already moved up in last 3-4 trading sessions or in the stocks which have given bearish breakout in hourly charts.
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