Nifty Technicals - 6th August 2012

After US and Europian markets closed higher on Friday, general expectation is that Nifty will also open gap-up. This gap-up open and any move upwards from there will face resistances at 5295, 5333 and 5420. While positive moving average and MACD cross-overs indicating higher moves on Nifty, mass sentiment is low with Nifty targets at 5050 & 4900. Any sustained break above 5300 will ruin the mass sentiment and make them run for short covering and this may result Nifty targeting 5400-5500 range quickly. So, today's gap-up open will have sustaining power or not will decide the future course of Nifty. Our expectation is that Nifty may steadily target 5420 with support at 5150, but mass market sentiment is not in our favor! Let us wait and watch for the direction...

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