First support for Nifty at 6130 - Microsec

After opening with a red session, the benchmark Nifty continuously fell to make a weekly low of 6139.60 on Friday. At the end of week it closed at 6171.45. It had a net loss of 0.64% over the previous week's close. On the sectoral front, some buying interest was seen in IT, FMCG, Health care and Oil & gas stocks. However, Power, Banking, Realty, Consumer durable and Capital goods stocks lead to a decline.

After making a low of 5972.80 on 22nd September, 2013, Nifty has given a pullback rally of almost 7.4 percent. Now it is likely to trade in the range of 6100 and 6370 in the short term. If it is able to maintain above 6370 level, an upward rally might carry it to 6420 and 6500 in the extreme short term. However the support of 6100 is very crucial and a breach of this level is likely to take Nifty lower to 5970. We recommend maintaining a stop loss at 6100 of the long positions.

For the coming week, first support of Nifty is at 6130 and the resistance is 6260. If Nifty breaks 6130, it may further go down to 6100 and then 5970. However, if Nifty is able to sustain above 6260, the level of 6310-6370 would become the next target.

Source : Equity Bulls

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