Nifty has stiff resistance around 5690-5980: Way2Wealth

Written By Unknown on Kamis, 02 Mei 2013 | 10.54

Way2Wealth has come out with its derivative report. According to the research firm, on higher side Nifty will see stiff resistance around 5960-5980 levels. Any bounce to those levels should be used to book profit from long positions.

On Tuesday indices opened on positive note but saw profit booking from higher levels that dragged nifty in negative zone. However on lower side nifty found strong support around 5880 levels and saw short covering in second half of session that helped nifty to recover all the losses and close with gain of 26 points. 

Unwinding of short positions was seen in nifty and CNX Nifty futures from lower levels whereas profit booking was seen in bank Nifty fut. in Tuesday's session. Fresh buying was seen in FMCG and metals sector. Major long positions were added in stocks like Tata Chemicals , Bata India , Siemens , Coal India and Lupin .

Today markets are expected to open with minor gains but on higher side will see stiff resistance around 5960-5980 levels. Any bounce to those levels should be used to book profit from long positions whereas on lower side put writing at 5800 strike will provide strong support to indices in short to medium term perspective.

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