Nifty to open flat on mixed international cues - IDBI Capital

Yesterday, the session has ended by forming a "Bullish Candle" on the daily charts. The action suggests of bulls gripping the momentum and marching higher. At the opening bell, Nifty started the session on a positive note; however, in the first half, it traded sideways posting a day's low at 6024.while during the second half strong buying lead Nifty to scale higher for the rest of the day before halting the session at 6056 with 32 points gain over the previous day. After the whole day of action, Nifty finally managed to sustain above the previous resistance of 6042.And this action has opened the higher target of 6125 in the coming sessions. On the oscillator's fronts, RSI & Stochastic have turned positive on the daily charts. Overall, the market breathes were even steven with higher volumes compare to the previous day.

Technically, the 6000 mark has proven to be a battle ground for both the camps and this time the bulls seems to be gaining supremacy on the momentum. At current levels, any dips should be used as a buying opportunity for the higher targets. Therefore, traders are suggested to gauge appropriate signals before taking a trading bet on the indices. On the back of the mixed international cues our markets are expected to open on a flat note; while buying support could be seen at the lower levels. However, any contrarian call will be covered during the trading sessions. Therefore day traders are suggested to first take a clue from the initial half an hour range in Nifty and then trade accordingly in the direction of the breakout. Intraday support levels are placed at 6015 and 5964 whereas the resistance levels are placed at 6086 and 6125.

Source : Equity Bulls

Keywords