Nifty ends forming a Bullish Candle with lower shadow on daily charts - IDBI Capital

Yesterday, the session has ended by forming a "Bullish Candle" with a lower shadow on the daily charts. Overall, the action indicates of a counter rally from the lower levels. At the opening bell, Nifty started the session on a flat note; during the first half, it traded southward and posted a day's low at 5964.while in second half, a strong buying lead Nifty to scale higher for the rest of the day and the session was settled at 6001 with 13 points gains over the day. In the past couple of sessions Nifty has formed a trading range of 5977 to 6042 and a violation of range will decide the forth coming trend. On the oscillator's fronts, RSI & MACD are placed with positive signals on the daily charts. The market breathes were in the favor of the advances with even volumes compare to the weekend.

Technically, the 6000 mark has proven to be a battle ground for both the camps were the bulls and the bears are trying to claim their supremacy on the momentum. However, the upside target of 6125 would remain intact for the short term. On the contrary, the trend will reverse only when Nifty starts forming lower high low on the daily charts. Therefore, traders are suggested to wait for the range to be violated before taking a positional bet. On the back of the mixed international cues our markets are expected to open on a flat note; while indices will continue to trade volatility 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 5965 and 5915 whereas the resistance levels are placed at 6030 and 6085.

Source : Equity Bulls

Keywords