As we saw Nifty trading in tight range throughout the week, we can even call it consolidation, we are now seeing that this consolidation cannot be ruled out to more extend. So a short covering rally is expected targeting 5850 levels.
When we talk about nifty futures we are more likely to bounce back to 5850 levels. Technically nifty is having strong resistance at 5744 level. Support at 5615 and 5563.
Our trading strategy for next week 24 January 2011 : Buy nifty near 5678 level for weekly target 5850 and 5897. Also place stop loss near 5615 support zone.