Key US stock indices displayed substantial strength on Wednesday in a broad based advance mainly triggered by an unexpectedly huge drop in Unemployment claims signaling some revival in the labor market. Stock markets in Asia are trading positively on Thursday.
Post the late session selling in trade yesterday led by the loan scam against some public and private financial and real estate companies; the domestic bourses are expected to take a breather in today’s trade. In the NSE Nifty, the Critical level for uptrend is 5880 and above this we may see some confidence coming back to the market. However, momentum can prolong only if it sustain above the first Resistance at 5936. Amidst the rollover volatility, if the index stays above 5936 it can target the Major Resistance at 5977. On the flip side, if Nifty is unable to sustain above Critical, it may trigger further downtick towards the first Support at 5836. Lower to this, markets might get Strong Support at 5816.