NIfty opened weak in line with other asian markets and hit a low of 5468 in the early hour of trade. It dilly dallied through the day in a small range with a positive bias before closing the day at 5494 down 36 points. Our view remains the same as yesterday’s. In the short term, Nifty will continue to face stiff resistance around 5600 level. Our medium term view would remain neutral as long as the level of 5600 is not taken out on the upside. The NSE Mid Cap index too is indicating a short term resistance at 7700. A breach above 7700 can help this index advance till 8000 where it could counter stiff resistance. Certain momentum indicators are beginning to indicate bearish fatigue in this index.

For the NIfty, we suggest a wait and watch approach for the next few days as long as the level of 5600 is not breached. Negative to neutral bias should be maintained closer to level of 5600 and only on a successfull breach above
5600 should the prevailing bias turn positive. This is an occasion to sit back a bit to wait and watch the developments as they unfold.