Nifty manages to close above 6000 psychological mark - Axis Direct

Nifty opened with an upward gap and remained lackluster within narrow range of 6010-5990 levels indicating absence of strength on either side. Nifty managed to close above 6000 psychological mark almost after two years. Nifty closed at 6009 with 16 points gain.

On the daily chart Nifty has formed a small bear candle maintaining higher High-Low formation. It has witnessed a lower shadow indicating a buying support at lower levels. This suggests a positive bias in the near term. Index is sustaining and holding its previous breakout level of 5965 which also coincides with the bullish gap area(5964-5982) formed on 2nd Jan. Hence the immediate support is placed at 5982-5965 levels. The hourly chart indicators are hovering in overbought zone which signals a possible intraday correction. However a sustainable move above 6020 would trigger a fresh upmove in the range of 6050-6070 levels. The short term and medium term trend remains bullish traders are advised to remain long and any short term corrections should be treated as a buying opportunity.

The daily strength indicator RSI is slanting upward above its reference line indicating gaining strength. The daily momentum Oscillator -Stochastic is also in bullish mode however it's approaching in overbought zone which remains a concern.

The trend deciding level for the day is 6005, If NIFTY trades above this level then we may witness a further rally up to 6025-6045-6070 levels. However, if NIFTY trades below 6005 levels then we may see some profit booking initiating in the market, which may correct up to 5990-5970-5950 levels.

Stocks to focus for intraday Long: Hexaware, Idea, Godrej Ind., Crain, Dr Reddy, Bhartiartl, INFY, TCS , Reliance Ind.

Stocks to focus for intraday Short: GMDC , Titan Ind., Pantaloon Ret., Tata Power, Lupin, Sunpharma, Federal Bk, Heromotoco.

Source : Equity Bulls

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