Nifty faces resistance at 5730

Nifty faces a resistance at 5730 during the trade today. After a good rally during the last two days which has added around 200 points to Nifty seems fizzling today. After a small gap up at 5780.65, Nifty moved higher and it was expected that Nifty will face a resistance around 5740 or 5750 which is supposed to be the immediate resistance. But before that the Nifty faces a resistance below these levels and made a high of 5732.15 in early trade. After the high of 5732.15, Nifty tries 2-3 times during the day to cross this level and try to meet 5740 but it is sold out below that levels. Nifty made a lower highs during the day which is a weak signals. Considering the weakness, we had also given a sell call in Nifty at 5720 with a target of 5680. Immediate after our call the Nifty slide and touched a low of 5669 which was much lower to our expectation, which again shows a weakness in the market. We had given the call around 12:50.
After making a low, Nifty showed a recovery and managed to go up to 5725 again but again fell to close flat at 5688.70. Sensex also closed in red.
Today Midcap stocks showed some buying and Midcap closed in green. In view of the chart analysis, it can be said that tomorrow Nifty can slide further and find a new base where from it can bounce back. We had already made a strong support of 5500. But this is too deep. So if Nifty wants to go further up, it has to make another base which should be any levels around to 5600 or 5650.
Traders are advised not to take any long positions in any stock till Nifty gives another sign of going up. This is advised because the global markets are now coming to correction and many hedge funds in US and Europe had suffered heavy losses in Gold bets! The effect of Gold turmoil can be seen in the next few trading sessions and how serious is the effect, no body can say except the time!
Tomorrow's strategy should be to avoid long positions in Nifty. Short Nifty if it trades below 5670 with a target of 5610 which is the support in our view.
As per the data sheets, today is a long list of stocks where long unwinding has taken place.