Indian markets to open flat on mixed international cues - IDBI Capital

Yesterday, the session has ended by forming a "DOJI" on the daily charts. The action suggests an indecisive and confused session for the day. At the opening bell, Nifty started the session on a positive note; thereafter, it traded sideways with intense volatility throughout the day before halting the session at 6082 with 17 points gain over the weekend. In the past couple of sessions, the prices have scaled higher but the momentum seems to be having lack of confidence. Also the prices have sustained its up move above its 5 day EMA. However, there is a lack of trader's participation near the 52 week high on the indices. On the oscillator's front, RSI & Stochastic have signaled a positive crossover on the daily charts. The market breathes were in the favor of the declines with lower volumes compare to the weekend.

Technically, we had expected an impulsive short covering near the 52 weeks high but the up move is unable to impact the cutting of short positions. This may be due to the trader's light positions in the markets or a wait and watch approach. However, any dips on the indices should be used as a buying opportunity for the higher targets. Hence, traders are suggested to avoid short selling at these levels. On the back of the mixed international cues our markets are expected to open on a flat note; while buying support could be seen on intraday dips. 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 6050 and 6000 whereas the resistance levels are placed at 6130 and 6180.

Source : Equity Bulls

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