Inspite of the weak Asian cues, the Indian markets opened on a positive note and exhibited strength as the day progressed. The broader market underperformed the benchmark indices. S&P CNX 500 was up 1.29%, CNX Midcap was up 0.63% compared to Nifty which was up 1.58%.The price movement in the last few days hasn’t warranted us to reconsider our positive stance at this juncture. But our pivotal level from where the short term positive structure appears sustainable remains at 5600. A decisive breach above 5600 can take the index closer to 5700 or higher.

Our medium term view remains neutral as long as the level of 5600 is not taken out on the upside. The NSE Mid Cap index 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.

Hence, for the NIfty in the medium term, we suggest a wait and watch approach for the next few days as long as the level of 5600 is not breached. Only on a successful breach above 5600 should the prevailing bias turn positive.