Nifty Technical View - December 26, 2012 - Karvy

The Nifty opened higher and retreated lower to test its support zone of 5840-5850 in the early session. Thereafter, the Index displayed lackluster trade action in a narrow range of 5845-5865 for the rest of the session. As long as the key support level 5840 unscathed, the Index is likely to extend its prevailing range bound trading, for which, the cap is indentified at 5940.

The key oscillators in the hourly chart are turning upwards from the oversold region and would be support for the Index to drift towards its higher end of the prevailing range (5940 level). However, a decisive move below its key support level of 5840 is required drag the Index towards 5800 negating the upside potential at the immediate front.

Among technical indicators, the 14-day RSI is pointing southwards in line with the Stochastic, which can prompt the bulls for profit booking activity near the resistance levels.

Source : Equity Bulls

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