Nifty Technical View - January 4, 2013 - Karvy

The Nifty opened higher and traded in a narrow range of 5995-6015 throughout the session. The Index settled above the 6000 mark, first time in last two years. Note that the Breakaway Gap formed prior to the last session remains unscathed and hence, further gains towards 6050 and then 6100 is likely in the sessions ahead.

The key oscillators in the hourly chart are deeply overbought indicating the chances of some profit booking activity before transiting higher towards the aforementioned levels. In that case, the Index is likely to hold the support of 5880 level to keep the positive sentiment intact. However, an immediate close below 5965 level is required to push the Index into range trading delaying the upside potential.

Among technical indicators, the 14-day RSI is exhibiting positive momentum in line with the Stochastic line. This suggests the positive momentum is still intact and would instigate buying interest on any dips towards the support levels.

Source : Equity Bulls

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