The Nifty continued its up move, closing higher or the third consecutive day.
There is support at 5700 and resistance at 6100 approx, giving a large 400 point trading range. Within this range, the Index has developed another smaller range, which is between 5960 and 5880. For short term traders, the position is as follows:
1. The short term trend remains up
2. A breakout above 5960 should confirm strength, giving the Nifty another 100 points of rally.
3. A close below 5880 will almost certainly be bearish, with the potential to touch 5500.
4. Strategy should be to buy on dips, till the Nifty is above 5880.
As the Nifty comes closer to 6100, trading positions should either be closed or protected with tight stops.
I am on ET-Now from 8:15 to 10 AM and 2:30 PM to 4 PM. I hope you get the time to watch.