After sharp run up Nifty continue to consolidate as we expect. Yesterday on the back of weak global cues Nifty opens with gap down and continues to slide throughout the day finally closing 30 points (approx) from the days low.
As support level for the Nifty is deep so we would advise traders to wait for Nifty to stabilise at some level before taking long position. In last two news letters we have mentioned that Nifty might face resistance around 5460-70 level which proves to be correct. Short term traders are advised to wait for Nifty to stabilise, whereas momentum traders are advised to take long position in Nifty above 5460-70 level for the target of 5550.