Below 5880 Nifty may decline to 5840-5800: Aditya Birla

Aditya Birla Money has come out with its report on Nifty. According to the research firm, Nifty could consolidate within 5880-5970, however if 5880 is breached decisively then sentiment could remain weak towards 5840-5800.

Nifty opened on a flat note and after posting a high of 5940 sold off steadily and settled at 5897, with a loss of 36 points last session. Prices are holding below the key resistance zone of 5950/5970 while the overall momentum in daily RSI (14) and MACD (12/26/9) is weak indicating fall towards 5840/5800 going forward. However, based on last couple of sessions price action minor consolidation within the range of 5880-5970 seems possible before witnessing such weakness.  Only a decisive breach below 5880 could negate the consolidation and continue to keep the sentiment weak towards aforesaid support levels.

Outlook and strategy:

Nifty could consolidate within 5880-5970, however if 5880 is breached decisively then sentiment could remain weak towards 5840-5800.

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