Nifty closes on a flat note at 5905 - IDBI Capital

Yesterday, the session has ended by forming a "Small Doji" on the daily charts. Overall, the action indicates of a confused and indecisive session within a narrow range. At the opening bell, Nifty started the session on a flat note; however, Nifty traded sideways and subdued throughout the day before halting the session on a flat note at 5905 with 3 points loss over the weekend. During the past three week, Nifty has failed to breach the congestion range of 5823 to 5965.Here; Nifty is passing through a phase of a time correction waiting for an appropriate trigger for the forth coming trend. In that period; most of the actions were concentrated in the cyclical stock specific activity. On the oscillator's fronts, RSI & MACD are placed flat below the trigger line. The market breathe were positive with a dip in the volumes over the weekend.

Technically, the setup is poised and held near the upper band of the consolidation phase. However, the ongoing phase is shaping up in a Flag formation on the daily charts. While, if Nifty breaks the upper band (5965) decisively then Nifty could witness an impulsive rally towards 6125 in the short run. And on the lower side 5823 will act as crucial support for the ongoing trend. On the back of the mixed international cues our markets are expected to open on a positive note; while indices may trade sideways to 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 5876 and 5815 whereas the resistance levels are placed at 5930 and 5988.

Source : Equity Bulls

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