In our previous post,Nifty upmove was anticipated towards 6040 or higher and resistance near 6100 level.On Monday Nifty declined towards 5820 and took support there.Continuing with positive momentum,Nifty crossed 6040 and after touching 6107,closed tad below 6100 at 6096.
Fig 1-Nifty chart
Fig 2-TRIX & Momentum
On daily chart,Nifty is in the process of making an Inverse Head and Shoulder Pattern,a trend reversal bullish pattern,the neckline ( orange trendline ) for which coincides with 6160-6170 ( Fig 1 ).If it manages to close and trade above that level with good volumes,it will open higher levels up to 7000 for nifty in future.
On last trading day,Nifty formed a Hammer candlestick on daily chart indicating some resistance at higher level of 6100. With FII's support and positive global markets,nifty is expected to keep maintaining positive trend.In Friday's session , FII's bought index futures worth Rs. 1000 crore and sold index options worth Rs.360 crore.On Nifty chart, TRIX ( Triple Moving Average Crossover ) has turned positive ( middle graph in Fig 2 ) and Momentum is already strong ( lower graph in Fig 2 )
For the coming days,Buy on dips strategy can be adopted .Nifty can be bought on dips towards 6050 and 5970 for higher targets of 6140 and 6220. ( spot levels )
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