NIFTY – Moving to a higher trading range

Bulls had a feast as Nifty sprinted to traverse the much coveted 5570 levels today (Monday). Nse’s benchmark Index, CNX Nifty ended the day recording a high of 5589.40 elevating almost 100 points during the day. The index rallied to its 31 month’s high taking cues from encouraging US unemployment numbers, which provided much hope of recovery in global markets. Moreover, European markets also rose to a four-week high because of positive manufacturing data reported in the third quarter in UK.      

Metals, Banking and Realty sectors drove the indices with Tata Steel and Hindalco gaining 6.42% and 4.99 % respectively. Following Metals, amongst banks, ICICI bank and SBI Bank led the space by rising 3.84% at Rs. 1037 and 3.09% at Rs. 2858 respectively on the bourse. Amongst Realty stocks, HDIL rose up by 3.5% at Rs 275, Unitech gained 2.9% at Rs 83, while Indiabulls Real Estate added 1.8% at Rs 179.

  

On the charts, Nifty has confined itself in an ascending channel from past some months, trading around a range of 5300-5450. After today’s rousing progress, Nifty is expected to take further up moves and break this channel to reach the next trading range of 5600-6000 in the coming months. However, if the bulls can’t hold on to these levels and volumes decrease, Nifty might see a sharp correction On the way down Nifty is likely to find strong support at 5340 levels.