Nifty largely traded with a negative bias and touched a low of 6079 mid-afternoon and took a U-turn to test 6115 levels. Significant resistance is seen around the levels of 6115 levels today and spot prices again fell to 6067 levels and recovered to 6115 level. VWAP @ close is 6131. Nifty closes the week @ 6103. The recovery from day's low to 6115 has been encouraging and good long trades for intra day players with the right kind of volatility.
1) On Monday, 6135 level assumes importance. If Nifty is able to cross and trade convincingly above 6135 levels on spot, then upward trend resumes with hurdles at crossing 6180 and 6200 levels with upside target of 6280-6330-6400.
2) If Nifty closes below 6060 on Monday, then a fall up to 5990-5920-5850 could be a strong possibility. As long as 6060 is not broken on spot, bias is up short-term. Today twice the level of 6060 has been protected well enough, indicating good support at lower levels. The impetus for upside has to come from the expected good Q2 results of the index heavy weights.
3) Two important levels to watch on Monday is break down below 6060 or breakout above 6135 spot prices. Of note, futures is still trading at high premium. Happy weekend! Happy trading!
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