Today on the back of yesterday's gains, Nifty Future opened firm and remained sideways for better part of the day - except in the last hour it made a high of 5613 but gave up the gains in last 30 min to close at 5592. Thus the EOD candle reflects a doji - suggesting indecisiveness. It should be noted that Nifty Future has remained below 5620 level indicated by the trend line (in Blue) on the EOD chart.
The interesting part for tomorrow will be that either Nifty Future has to break this level and continue its up move and go up to 5675. Alternatively, if it comes down and breaks the trend line on the down side, it may loose the momentum of the last 5 days. For this purpose, I will consider 5560 as an important level. Below this, it will find support at 5540 and 5510. Please remember that Newton's Law works very well on this market too.
Considering that I am not inclined to suggest long positions at higher levels, I would advise caution to hold long positions with tight stop losses. One can consider going short below 5540 with stop loss of 5570. On down side it will find support at 5510 and 5480.
