Nifty nearing a critical resistance of 6230 - 6310 range - GEPL Capital

The benchmark BSE Sensex and NSE Nifty climbed to the highest level in almost three years on value buying across the board triggered by global cues as concerns about US tapering eased and China's economic growth picked up.All 13 sectoral indices on the BSE advanced, led by bank and metal shares. Sesa Sterlite and Tata Steel were the top gainers as 29 of the 30 Sensex shares moved up. ICICI Bank, HDFC Bank, ITC Ltd and Reliance Industries (RIL) boosted the Sensex. Larsen and Toubro gained ahead of its second-quarter results. The S&P BSE Sensex opened higher on firm Asian cues and went up to the day's high of 20,932.23.It stayed in positive territory through the day and ended at 20,882.89, up 467.38 points or 2.29 per cent, completing its third week of gains. The Sensex was at the highest close since 20,932.48 on November 9, 2010.Shares also got a boost on speculation the US Federal Reserve would maintain its monetary stimulus until next year. The 50-share CNX Nifty on the National Stock Exchange rose 143.50 points, or 2.37 per cent, to end at 6,189.35, the highest level since 6,194.25 on November 11, 2010. The rupee climbed to a two-month high of 60.92 against the dollar in the morning amid sustained capital inflows from foreign funds.

Nifty added on yet another 2.37% to its value on Friday and concluded the week with a gain of 1.53%. It did manage to respect the support of 6000 and averted any decline. It even moved past the resistance of the earlier high of 6140and gave a close beyond it. The short term trend in the index is still positive as long as it trades above the level of 6000. On the higher side it now has some key resistance placed in the range of 6230 and beyond that at 6310. One must await confirmation of a break out and sustenance beyond the all time high of 6357 to expect further bullishness.

Source : Equity Bulls

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