On the back of yesterday's break out, Nifty Future opened firm and after making intraday low of 5498 and there after made day's high at 5534. We are now close to the level of 5555 which in my opinion is a strong resistance level. Even if we temporarily manage to breach it, @ 5600 level we have upper channel line which can act as resistance.
Considering the US markets at the time of writing this post, I am reminded of similar situation when we made all time high (6336) in Jan 2008. While we were making new high, US markets were already on their way down and we followed after sometime. Will the history repeat ? Just a point to ponder over - particularly if you are very bullish.
I continue to advise caution, as I do not think the disconnect with Global market can last for long. It will be better to sell at higher levels - I mean delivery based selling. Needless to repeat, that fresh buying may best be avoided considering the strong resistance at 5545 and 5600.
Short selling may be considered below 5445, with stop loss of 5470. On the down side, it will find support at 5400. ...the fall will accelerate below 5400.
All the best .
All the best .
