INTRADAY NIFTY TIPS : After consolidation during the last week, big move were saw due large buying from the FIIs resulted domestic market closed on a two month high. However, at the same time, individual investors should be cautious approach as the valuation are stretched and risk of corporate earnings in the first quarter not being up the market expectation, this will trigger some profit booking in the market in short term.
On the other some factor should be bear in mind like debt crisis of Portugal and Italy, early bird results, inflation rate and sentiments around the possibility of another round of interest rate hike by the RBI. Overall trend is bullish but wait for a market correction phase to enter stocks with good prospects.
In weekly Chart, the Nifty Stock has formed a Doji Pattern suggesting a sign of indecision. On a technical front in this week - consider major resistance 200 DMA is 5750 and decisively crossover with another round-off up move which will test in near term 5900.
On the lower side support is 5600 and decisively break will invite more profit booking and likely to test 5530-5500. Traders should carefully watch this level and keep a stop loss 5600 for any long position. .
TODAY: Resistance 5700-5710 - crossover and stay with volume it will show strength, downside support 5651 - break and trade below it will test 5625-5610, which is a strong support, break down this support will invite free fall and likely test 5550.