NIFTY @ Resistance Line

NIFTY Daily Chart Technical Analysis:

Nifty opened higher than yesterday.  It survived an early-day scare and rallied upwards to close higher than opening.

Open: 5910  Low:  5855   Close:  5948

Market Outlook:

• The market doesn't seem likely to fall tomorrow.
• Breaking 5970 is of significance.  There might be an opportunity to go long if this price level is broken, but wait for me to confirm before jumping in.

Technical Indicators:

• The market stopped going higher today after reaching its short term diagonal resistance line.
• There have been quite a few Hammer formations recently.  There is an effort to push the market down, but people are unusually upbeat and are not allowing the market to fall.  People are considering any dip in price as an opportunity to buy, pushing the market up again.
• Alternately, it also looks like the market is trying very hard to stop a big fall.  If the bulls run out of hope, there may be a big single day fall soon.
• Breaking 5970 is of significance, but sustaining this break is also important.  As of now, the market may lose steam by the time it breaks this level and start falling back again after doing so.

NIFTY Daily Chart Technical Analysis