Nifty: Pullback possible

Nifty gained more than 0.5 per cent in a truncated but eventful week (derivative expiry and financial year ending ) and appears to have bottomed out temporarily which would be confirm on further rise. Technically, Nifty formed a Bullish engulfing candle on Friday and any further rise would bring back short term bullishness. Further, Nifty had taken support around 200 days SMA and a reasonable pullback can be expected. However, Nifty needs to close above 5800 to signal bottoming out. As New Derivative settlement and new financial year would be commencing from Monday, further rise is quite possible. However, traders should be careful around 5800 level, which if convincingly breached only would make room for further rise. Mid cap stocks, which had fallen sharply are due for a reasonable recovery. Better to follow scrip specific approach for investment which qualify for "Value Investing ". Short term traders need to be ever vigilant tracking short term movements and investors with medium and long term outlook can invest in quality stocks on SIP basis. For the coming week, Nifty spot is expected to face resistance at 5760, 5835,5910 and find support at 5605, 5535, 5460. Nifty continues to remain in Bearish zone and would get into short term bullishness on a close above 5725. However, strong resistance too is there around 5800, which if crossed would give rise to further bullishness. Advice for Traders In view of the commencement of new Derivative series, a reasonable rise can be expected. In case Nifty goes past 5800 only further rise is to be expected. Hence caution is advised around 5800.