Nifty is hovering around 5980-6040 for the last 6 sessions and it has been seen that Nifty traded more than 200 points after breaking out of this range 6 times previously therefore minimum such moves should be expected after its break out. Meaning on mentioned range break out is as follows:-
1- Breaking down and sustaining below 5980 will mean continuation of correction to test those lower support and fibonacci retracement levels which has already been posted in last 3 sessions outlooks.
2-Breaking out and firstly sustaining above 6040 and then sustaining above will mean correction completion confirmation to test those resistances which have already been posted in last 3 sessions outlooks.
1-6 Times Trend Decider Range- 5980-6040 chart:-
Intraday charts showed consolidation patterns immediately after opening yesterday therefore following lines were told after 1st hour yesterday in Mid-session outlook:-
"intraday charts of first hour showed consolidation patterns. Up moves will be considered after sustaining above 6000 today"
Although Nifty could not sustain above 6000 yesterday but intraday charts of yesterday are suggesting whole day consolidation and expected that Nifty will cross and sustain above 6000 today. As good consolidation therefore yesterday intraday range(5988-6005) will proove strong support in the coming sessions.
1- Intaday Buying Patterns on 28-12-2010 chart:-
Following technical indicators are also signalling upmoves:-
1- All the short term EMA(8,21,55,200) are above longer term EMA.
2- MACD line is above Average line and both are rising.
3- ROC & RSI- Both are in positive zone.
4- Short term indicators have cooled down in overbought zone.
As per my view Indian markets are well prepared for upmoves and sustaining above 6040 will be confirmation of next rally. Expected that rally will begin today and nifty will cross as well as sustain above 6040 now. Green closing after positive opening expected today.