Nifty 6000 mark proves to be a battle ground for both bulls & bears - IDBI Capital

Yesterday, the session has ended by forming an "Engulfing Bearish Candle" on the daily charts. The action suggests of a Stiff resistance at the higher levels. At the opening bell, Nifty started the session on a flat note; however, after posting a day's high of 6054,An intense selling pressure lead Nifty to travel southward by forming lower high low throughout the day before halting the session at 6001 with 54 points loss over the previous day. In the past two weeks there has been an intense tussle between both the camps trying to get hold on the momentum. However, the momentum would remain intact till Nifty sustains above 5950. While the higher target of 6125 is still achievable in such a scenario. On the oscillator's fronts, RSI & Stochastic have turned negative on the daily charts. The market breathes have worsened to 1:2 with higher volumes compare to the previous day.

Technically, the 6000 mark has proven to be a battle ground for both the camps and this time the bulls seems to be gaining supremacy on the momentum. At current levels, any dips should be used as a buying opportunity for the higher targets. Therefore, traders are suggested to gauge appropriate signals before taking a trading bet on the indices. Here, the positional traders are suggested to maintain a trailing stoploss of 5950 in the Nifty spot. On the back of the strong international cues our markets are expected to open on a positive note; while buying support could be seen at the lower levels. 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 5974 and 5940 whereas the resistance levels are placed at 6030 and 6085.

Source : Equity Bulls

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