After a nearly flat opening markets moved up from strength to strength to finally close the day at the high of 5908 up 82 points. The broader indices performed nearly on par to the benchmark index, S&P CNX 500 was up 1.45% and CNX Midcap was up 1.20%.

While we retain our positive view on the Nifty, we had advocated being cautious after an unrelenting uptrend that started from 5350. Short term technical indicators too have reached over bought zone and suggest that the upmove now seems stretched. So a breather for this trend which started from around 5350 may be on the anvil.

We had mentioned in our previous report that a breach above 5800 for the Nifty would give it the required momentum to carry it all the way till 5850-5900, which is the next resistance zone for markets.

Nifty made an attempt above 5900 in today’s trade. A decisive move below 5800 can tamper this uptrend in the short term. Till 5800 level gets breached on the downside it may be prudent to have a positive bias to the market.

The NSE Mid Cap index after breaking some important resistances is now inching its way towards 8300. A successful breach of 8300 can take it all the way closer to 9000. We remain positively biased on this index.