The Nifty had a day of consolidation and is holding on above 5,600. We are deeply oversold and could see a small up move towards 5,680-5,700 in the next session or two. It also is F&O expiry hence there could be a bit more of short covering. If one want to go long make sure you have a strict stop loss at 5,600-5,610 zones as if the Nifty breaks below these levels then we might move considerable lower as it a break of a major neckline on a weekly timeframe for the Nifty, hence trade light on the long side.
Technically, Nifty is finding strong support @5620 on weekly charts, below 5620 closing nifty may extend its down ward move till 5,490-5,355 levels. If Nifty maintain above 5,680 then we can expect a strong pull back rally till 5,880-5,950 in very short term, though market is now entering in an expiry week which is truncated by two holidays in between, so volatility might be higher on the browser. Nifty may find resistance at 5,660-5,779-5,703 and supports at 5,617-5593-5,574 for the day.
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