Markets ended this week on sharp recovery in broader markets as Nifty and Sensex both managed to close above their psychological mark. When we talk about nifty futures, it managed to close above its crucial resistance of 5555, hence we saw 150 points bounce in nifty. So strong closing above 5555 level has now opened the way for 5700 area in near term. Also the range for nifty has shifted, its now 5555 to 5700 for march series. We expect strong buying coming in the broader markets next week, supporting the markets to touch its next resistance of 5700. Also on downside Nifty has support at 5555 and 5467. So a trader must open only long positions in this markets for weekly target of 5700 and 5757.
Our Analysis: Nifty futures is more likely to bounce to 5700 levels next week. Technically nifty is having strong support at 5555 and 5457 level and resistance at 5702 and 5757.
Our trading strategy for next week 28 March 2011: Buy nifty above 5567 level for weekly target 5700. Also place stop loss near 5535 on closing basis.