Nifty is likely to move between 5,950 to 6,180 level :: Indiabulls Research

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Nifty is likely to move between 5,950 to 6,180 level
Nifty witnessed a high volatility this week. It initially moved lower, breached the strong technical and psychological support mark
of 6,000. It moved down further to mark week low of 5966.75. Ultimately it found strong buying support there moved higher to test
6,120 levels on the back of selective buying by fund houses and retail investors. But Nifty could not manage to sustain it ongoing
upside momentum and retrace back below 6100 on Friday 22, Oct 2010 of this week. It finally managed to close above 6050,
gained 0.06% (3.4 points) from the last week close. On daily chart Nifty exhibiting "ascending triangle" which is bullish breakout
pattern if upper trend line breaks. Price is now near to upper trend line, and moving with in triangle. Nifty breached the
psychological mark of 6,100 decisively on Friday (October 22, 2010) week, but could not manage to sustain above that, currently
facing stiff resistance at 6,100-6,120. If this level breaches decisively then we could see rally up to 6,180 mark. On the flip side
immediate strong support seems at 6,000. If this level breaches then could see fall up to its strong support of 5,960 mark.
Technical momentum indicators are currently showing mix signals. Stochastic is currently moving in neutral zone, showing
positive crossover, indicating upside. Another momentum indicator RSI is currently trading in neutral territory at 55 on the brink of
showing positive crossover, indicting cautious upside. On last day of the week ended (October 18-22, 2010) Nifty has just
managed to close above 8 Day and 34 day EMA. Till the time it manages to trade above 8 Day and 34 day EMA not expecting
any major correction in coming week. However expecting Nifty to retrace initially up to mark of 6020 but overall expecting it trade
with positive bias and likely to move in between 5950-6,180.