Markets closed another day on a firm footing. After opening with a gap at 5501, Nifty moved sideways with a neutral bias for the major part of the day before closing at 5522 up 42 points. The broader indices slightly underperformed the benchmark index, S&P CNX 500 was up 0.76% and CNX Midcap was up 0.60%.

The markets have witnessed a sharp pull back from the low of 5355 during the last three days. But we had stated in yesterday’s report that if Nifty breaches the level of 5550 by today, then that would augur good for the trend and the Nifty can then target higher level of 5700 or beyond. This scenario has not panned out today. However the day’s move has added to the momentum and further upsides can be expected.

The NSE Mid Cap index has successfully breached the 7700 level resistance and may now be headed towards 8000 in the coming days. Momentum indicators continue to suggest bearish fatigue at lower levels and we now expect the index to move up in the near future.

In the medium term, we expect the Nifty to start inching up. As mentioned the nearest resistance is seen at 5600-5625 but a move above that remains a possibility.