The market sentiment was bearish during the week gone by and the Nifty
closed in the red on all trading sessions of the week. The fall was
triggered by a slide in the banking sector. The public sector banks took
a knock which played a key role in keeping the frontline indices in the
red.
Technically, the outlook for the Nifty remains bullish. From a
medium-term perspective, only a breach of the swing low at 5,700 would
damage the bullish set-up. From a short-term perspective, a fall below
minor support at 6,078 would be a sign that the index is in the midst of
a deeper downward correction.
Below 6,078, the Nifty could slide to the major support at 5,750-5,800.
From a trading perspective, short positions may be considered with a
stop loss above the recent high, for a target of 5,800.( Note: All the levels mentioned here are of nifty spot)
