Market Outlook 6 January 2010

Nifty (5278)
Yesterday Nifty opened gap up and closed at “DOJI” which suggest uncertainty at higher level but no sign of bearishness, some amount of consolidation cannot be ruled out. Strong support formed at 5187 level, Next major resistance placed at 5350 level. Daily RSI and MACDh are still in bullish mode where as stochastic is hovering in over bought region. Nifty 30 Minutes chart has formed “High wave” pattern which suggest some amount of supply at higher level. Over all technically scenario is bullish and buying on dips work well as long as Nifty survives 5187 level on closing basis.

Intraday Support: - 5260-5242-5230

Intraday Resistance: - 5290-5305-5325