Today on the back of rise in Global markets, Nifty Future opened with a gap and maintained the up move with broad participation which also included Reliance. This led Nifty Future to make a new High of 5589 and closed at 5577.
As the US markets are closed today, we have no surprises at least for the opening session tomorrow. Moreover, we are close to the pattern target of 5600 and also a strong resistance region at 5620. Whether today's enthusiasm will continue tomorrow and help us to cross this resistance region needs to be seen. If 5620 is crossed - a tough call in my opinion, we can look for next resistance only around 5675-5700.
As the US markets are closed today, we have no surprises at least for the opening session tomorrow. Moreover, we are close to the pattern target of 5600 and also a strong resistance region at 5620. Whether today's enthusiasm will continue tomorrow and help us to cross this resistance region needs to be seen. If 5620 is crossed - a tough call in my opinion, we can look for next resistance only around 5675-5700.
I would continue to advise caution at higher levels and avoid fresh long positions. Existing long positions may be trailed with a Stop Loss of 5540. At the same time it will not to be prudent to under estimate the bull run and go against the trend and create fresh short position. It will be better to wait for a day and let the market give some indication of weakness before we consider going short.
