Markets opened lower and traded choppy today with a negative bias before ending the day at 5446 down 1.17%.The broader market outperformed the benchmarks. S&P CNX 500 was down 0.90% and CNX midcap was up 0.02%. After looking at today’s move, our stance remains more or less the same as earlier. Our observation from the last few days indicates that selling is reluctant at lower levels closer to around 5400 level. We may see a positive trend emerging which could have the potential for an upside breakout however that would depend on more development. The pivotal level from where the short term positive structure appears sustainable remains at 5600-5625.

Our medium term view remains neutral as long as the level of 5600-5625 is not taken out on the upside. The NSE Mid Cap index continues to indicate a short term resistance at 7700. A breach above 7700 can help this index rise till 8000 where it could counter stiff resistance. Momentum indicators continue to indicate bearish fatigue at these levels.

For the Nifty in the medium term, we suggest a wait and watch approach for the next few days as long as the level of 5600-5625 is not violated. We see no reason yet to revise our positive bias for the market.