5200 SUSTAINED

Nifty closed the last day of the week in red losing arbitrary 12 points at 5215.The overall breadth was negative with 616 advances to 861 declines.The market was expected to open with negative bias amid negative global cues.The nifty in its intraday journey losing  momentum drifted to around 5150 levels where it was pushed back by bulls to above 5200.Here we a witnessing strong demand around the 5150 levels which is becoming support for near term.Also the 5240 hurdle is limiting the market from elevating further, this level is quite significant since previously the markets reverted from this levels only.
                                                            The nifty is forming a double top at this level,hence markets are due for some consolidation.Past 3 sessions have been witnessing this.Also markets are due for some correction,sine from past few sessions they are not able to violate the the resistance and move up.Such scenario will lose the bullish momentum gradually  and we will enter into short term correction.The Stochastic oscillator has reverted from the overbought zone evidencing this.Also the ADX is reflecting vulnerable trend strength.
                                                                 The hope still remains as we are still trading around the short term moving  averages.In addition the U.S.markets posted a strong close on Friday,hence we are yet to discount it.On account of this we might open in green on Monday ,but the question still remains will we be able able to holsd the highs.  Hence with a skeptic view i suggest traders to book profits in long positions on rise.