GEPL Technical view on Nifty – 21st Sept.2010

Nifty opened positive and added on to its gains as the session progressed. It finally ended the day with a gain of 96 points at 5980. It continues to appear strong ever since it gave a breakout of an up sloping multi month “Trend Channel” last month. The target objective of this breakout works out to 6300 but in the immediate term Nifty is too overstretched and has resistance placed at 6000 – 6053 range. The trend remains firmly up as long as it trades above 5880. A breach of 5880 may bring in some corrective dips which can take it down to 5800-5820 band. Any declines may be used as an opportunity to buy for an upside target of 6300 over the course of next few weeks.

As for stocks, Tata Motors as well as Reliance Capital appear strong on the chart for next few sessions.


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