31st AUGUST NIFTY VIEW

On the back of positive close in the World markets, Nifty Future opened firm but could not sustain at higher levels. In the early trades, it made a high of 5465 and in the 2nd half of the day it broke the previous day's low to make a lower low at 5391. In a surprises move it showed sharp recovery in the last 30 min and closed higher at 5426....It is pertinent to note the current fall is without any negative news for the market and hence optimism creeps in at lower levels. Secondly, on the weekly chart 5398 is the immediately preceding weekly top - break of which will indicate a major bearish signal.

For tomorrow, I would continue to suggest - avoid long positions. On higher side, Nifty Future will find resistance at 5465 and 5485 and this area may provide good opportunity to go short with strict stop loss of 5500.

All the best