6091 in on cards

Pre-Open Market Outlook(08-12-2010)

Last 4 sessions trading range is 5945-6065. Nifty slipped below 5965 but could not sustain and recovered as well as closed above. Last 4 sessions closing is as follows:-

1- 03-12-2010- 6012
2- 04-12-2010- 5993
3- 06-12-2010- 5992
4- 07-12-2010- 5977

Trading has been so close in last 4 sessions that closing has been within 35 points. Although Nifty closed at the lowest yesterday in last 4 sessions but daily candle is bullish Hammer with intraday consolidation patterns and rounding bottom formations.

1- Rounding Bottom Formations Chart-

MACD turned positive after intersecting average line upward and good consolidation seen yesterday therefore expected that Nifty will break out last 4 days range sustain above 5065 and test 61,8% Fibonacci Retracement level(6091) in the coming sessions. It seems that last 4 sessions narrow range moves will finally proove consolidation therefore expected that Nifty will clear both next resistance ranges and will test last resistance range in this month:-

1- 6080-6120
2- 6180-6195
3- 6250-6320(last resistance range)

Positive market and Green closing expected today.