Yet another strong session for NIFTY - Aditya Birla Money

Yet another strong session for NIFTY as the index rallied almost continuously and settled at 5946, higher by 82 points on Friday.

As there is no indication of slow down or reversal in price action yet further gains towards 5970/5980 seem possible in the session ahead.

However, hourly RSI (14) is already overbought and further gains would push the same into deep overbought territory. This indicates the possibility of a downside correction after witnessing initial gains however confirmation from price action is awaited.

On the downside immediate support is seen near 5892/5860.

Only sustenance above 5980 would continue to keep the sentiments firm towards January high of 6112 delaying the expected correction.

Further gains towards 5970/5980 seem possible initially, however index could face resistance and see minor downside correction thereafter. Only sustenance above 5980 would continue to keep sentiment firm towards 6100 delaying the correction.

Source : Equity Bulls

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