Federal Reserve’s QE3 and price hike in diesal cuased a huge gap up opening in Nifty ,and Indian stock market surged than 2.40% Nifty managed to cross the crucial level of 5,550 and closed at 5577.65 with a gain of 2.62%.
From here nifty may hover around a narrow range of 5400-5650 at least for near term. Since the rally was conditional, considering this rally as a break out will be too early. We expect the Nifty to remain range-bound in the 5250-5650 range for the next couple of months.
Technically , if nifty breaches 5,390 , further selling up to 5,200 can be seen. On the other hand, a move beyond 5650 could pave the way forward to 5900.
The Nifty has been making higher tops and bottoms since the last 4 months and it took support at 4770 and rose to make a high of 5348.
Nifty Futures closed at 5577 with a gap up opening of 90 points and made a high of 5597 now next hurdel for nifty is 5600.