Nifty may touch 5800: Aditya Birla Money

According to report by Aditya Birla Money, as long as support at 5720 holds in Nifty, up move to continue towards 5800 levels.

Nifty traded with a positive bias edging higher towards 5750 zone.  Nifty has been moving up in a rising channel with the up move of last three days. As long as the rising trend line at 5720 holds, the index could edge higher towards 5800 levels. If however the rising trend line at 5720 is breached, the index could correct the recent rise edging lower towards 5670-5650 levels.  Daily momentum has given a positive crossover from oversold zone indicating that any fall now is likely to witness good buying interest.

Outlook and strategy:

As long as support at 5720 holds, up move to continue towards 5800 levels.

Bank Nifty traded with a positive bias edging higher towards 11600 zone. For the day, resistance at 11600 zone is crucial; failure to breach past would lead to the index correcting the run up of last 3 days towards 11350-11300. On the lower side breach of support at 11500 would be first sign of weakness creeping in.  If however the index is able to breach and sustain above 11600, the ongoing rally could extend towards 11800 levels. Daily momentum has given a positive crossover from oversold zone indicating that any fall now is likely to witness good buying interest.

Outlook and strategy:

Strong resistance at 11600 zone; breach and sustenance would lead to up move continuing towards 11800 whereas failure to sustain would lead to selling pressure creeping in pushing prices lower towards 11350-11300.

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