NIFTY OUT LOOK(Intraday)

NIFTY witnessed a two-way trade action in Friday’ssession. The index touched a high of 5632 and then a low

of 5563 before settling marginally lower at 5581.The 14-day RSI is moving flat near the neutral zone while
the Stochastic (14/3/3) is turning down from theoverbought territory after forming negative divergence.

This indicates that a significant top has been put in placeat recent high of 5740 and the short-term trend is still

down. Hence sentiment is likely to be weak towards thesupport at 5541 and then the recent low of 5497 in the
coming 2-3 sessions.On the upside, 5595 and then 5632 act as immediateresistance.

 Break above the latter in the session ahead would extendthe last few days’ recovery towards the medium-term resistance line near 5700 delaying the expectedweakness.

Support at 5564 is crucial for the day, break below which will invite

weakness towards 5541 and then 5497 levels. Sell below 5564 with

a stop of 5595 for a target of 5500.