Outlook for 05-01-2013
Nifty ended marginally positive by 7 points despite violating previous day’s low in an early. Nifty opened higher at 6011 level and registered days high at 6020 levels in an early trade. Thereafter, it could not maintain the gain and slipped down below previous day’s low at 5981 levels but managed to hold main support of previous gap area of 5960 levels and rose above 6000 mark in last half an hour of trade. At the end, Nifty closed at 6016 levels.
On daily chart, Nifty has formed a green “in neck line” pattern against previous day’s red “counter attack” pattern. It indicates that market has recovered is short but not change its trend direction. It means market may continue its further upward move. In this case, the level of 5990 which is acting as important support for the day remains watchable. If Nifty holds and sustain above this levels for the day then it will continue the upward move. In that case, Nifty’s possibility of testing 6030 and above that 6080 levels can not be ruled out. On the contrary, if Nifty fails to hold and remains below 5990 levels then we will see another intraday fall around 5960 levels…(remember, any sustainable move below 5960 levels will lead further fall into the 1st gap area around 5920 levels.)
The level of 5990 will act as trend decider level for the day. A sustainable move above this level will lead continuation in pullback around 6040-6080 levels in Nifty. However, failure to trade above this level will lead fall around 5920 levels.
Support :- 1) 5990 2) 5940
Resistance :- 1) 6030 2) 6070