Market Outlook 16th February 2011

Nifty Pivot 5460
Support 5441-5425
Resistance 5503-5538

After falling for more than 1000 points since January, Nifty finally manged to bounce back from its lows and is now recovering due to heavy short covering and fresh buying.

Nifty charts suggests a minimum retracement to 5555 level before it can face some strong resistance and near 5555 only we will see some consolidation.

In case Nifty manages to old 5555 level strongly and close above it for two consecutive days than we can see higher levels of 5670 and then 5775 as well in the coming days.

On the lower side if Nifty breaches 5425 level then we may see another wave of short selling.
If Nifty closes below 5425 for minimum of two sessions then we may again slide back to lower levels and support at 5381 and at 5316 level only which may be tested anytime.