Bottom-line:
Nifty ended the last session of 2015 on a positive note, closing above
the 7900-mark at 7946.35, up around 50 points. Albeit, the index is still
trading in a congestion zone, which lies between 7980 on the upper side and
7540 on the downside.
A breakout or breakdown on either side will decide the medium term
trend.
On daily charts, Nifty is trading above the downward slopping trend line
(i.e. 7790), indicating the index will extend it leg up. Momentum oscillator
MACD is trading in a northward direction; RSI has more room left on the upside.
This keeps the bullish sentiment afloat.
Major resistance is seen at 7980; any close above the mentioned hurdle
would mean a reversal of the bearish ‘Head and Shoulder’ pattern, which in
turn, would trigger fresh buying momentum.
For today, Nifty will continue its positive upmove, which will take it
towards the psychologically important level of 8000, and then further to 8070.
On the other hand, 7843 will act as a strong support level.
Intraday traders:
Day traders can continue to bet on the upside till
8050 levels. Kindly check the intraday levels mentioned under ‘Today's Trade’
section.
Positional Traders:
The best strategy now is to adopt a wait and watch
approach. For the ones who have built short positions on Nifty, they can hold
with the stop loss at 7980 on a closing basis. And in the case of Nifty closing
above 7980, wait till clear signs emerge before initiating any fresh long
positions.
