Intense Tussle between Bulls and Bears - IDBI Capital

Yesterday, the session has ended by forming a "Piercing Line Candle" on the daily charts. The action suggests intense tussle between both the camps. At the opening bell, Nifty started the session on a positive note; However, immediately after hitting a day's low at 5988, A consistent buying force lead Nifty to scale higher forming higher high low throughout the day before halting the session at 6039 with 37 points gain over the previous day. The ongoing action seems to be the breeding grounds before the start of the forth coming impulsive trend. However, the momentum would remain intact till Nifty sustains above 5950. On the oscillator's fronts, RSI & Stochastic have elevated higher on the daily charts. The market breathes were even with higher volumes compare to the previous day.

Technically, Nifty has been hovering in a tight range of 5940 to 6069.And a breach of 6069 will open up higher target of 6125 for the coming sessions. Therefore, traders are suggested to gauge appropriate signals before taking a trading bet on the indices. Here, the positional traders are suggested to maintain a trailing stoploss of 5940 in the Nifty spot. However, any dips on the indices should be used to buy for the higher targets for the short term. On the back of the strong international cues our markets are expected to open on a positive note; while buying support could be seen on intraday dips. 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 6001 and 5940 whereas the resistance levels are placed at 6066 and 6125.

Source : Equity Bulls

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