Nifty Technical View - December 26, 2012 - IDBI Capital

On Monday, the session has ended by forming an "Inside Day Candle" on the daily charts. The action indicates of a subdued and indecisive session for the day. At the opening bell, Nifty started the session on a positive note; Thereafter, Nifty traded sideways within the Fridays trading range and during the closing bell it settled the session on a flat note at 5855 with 8 points gain over the weekend.

As mentioned earlier, Nifty is unable to break the congestion range of 5823 to 5965 from the either side. The action suggests that the indices are desperately looking out for some trigger for the forth coming trend. On the oscillator's fronts, RSI & MACD are placed with negative signals on the daily charts. Overall, the market breathes have turned even steven with low volumes compared to the weekend.

Technically, on the back of the F&O Expiry in the current week, Nifty may remain sideways and highly volatile due to the rollover activity. Hence, traders are suggested to trade cautiously and light footed on the indices. However, after the F&O Expiry, we may witness a decisive breakout from the ongoing congestion range. Therefore, positional traders are recommended to wait and watch till the breakout and built up their trading positions according to the directional trend emerges from the said range. On the back of the weak international cues our markets are expected to open on a negative note; while indices may trade volatile for the day. 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 5823 and 5750 whereas the resistance levels are placed at 5885 and 5965.

Source : Equity Bulls

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