Index Technical View - December 27, 2012 - Karvy

The Nifty opened marginally higher and drifted upwards to post a session's high of 5917. Thereafter, the Index traded in a narrow range of 5900-5916. The Index is trading in a range of 5840-5940 for nearly three weeks and currently bounced from its lower end.

Hence, further gain towards its higher end of 5940 is likely in the coming session. The key oscillators in the hourly chart are exhibiting positive momentum near the overbought region. This would be supportive for expected gains to test the 5940 levels in the coming session but likely to retreat lower to keep the prevailing range bound trading intact. However, a decisive move above 5950 is required to drift the Index towards 6000 and higher.

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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