Nifty setup: Time to go long with targets of 5,340

The Nifty ended near the lower end of its 5,135-5,340 trading range on Thursday. The previous lows at 5,183 were whipsawed intraday, but the Nifty managed to close above that level.

A strong support convergence has happened around the 5,135 mark. The swing low at 5,135, the 200 day moving average and the multi-month trend line (green) have all converged together.
This makes 5,135 a very tough nut to crack. Investors can initiate fresh buys with 5,135 as reversal point and 5,340 as initial targets.