Nifty must cross, close above 6030 daily for breakout

The markets witnessed a lower turnover week along expected lines as the festive season saw truncated trader participation.
The bulls managed to prevail over the bears as the overseas triggers turned positive. The weekly combined exchange advance:decline ratio was positive as the figures were 11,506:9,793. The capitalisation of the same was also positive as the commensurate figures were Rs38,943 crore: Rs36,770 crore. In terms of sectoral performance, technology stocks led the upthrust, followed by banking and midcap stocks. The NSE gained Rs55,235 crore in market capitalisation over the previous week. Overseas investors were net buyers to the extent of Rs68.4 crore.

That saw the rupee end the week at 45.11 levels against the dollar (against the previous week’s 45.34/$ levels).

The US benchmarks saw the weekly close log new calendar highs as the bulls managed to retain their initiative over the bears. Both the Dow Jones index and the Nasdaq Composite gained in equal quantum.

The UK FTSE outperformed with gains over twice as much as the US indices.

In the Asian region, the Hong Kong market was the regional outperformer, whereas the Chinese market was the poorest performer. The Japanese and Singapore markets remained under pressure and ended with mild losses.

Overseas cues remain neutral-to-positive and domestic markets will have to rally mostly on their internal considerations.

Technically, the Nifty has logged a second consecutive week of gains, but remains under the congestion inflection point of the 6030 hurdle. For the chart to turn outright bullish, the 6030 level must be overcome forcefully and daily closing must be above this threshold.

The weekly range advocated for the Nifty — 5700/ 6075 — has held. This week is likely to witness a range of 6100 on advances above which the 6130 level maybe tested.

Support will be at the 5825 levels.

The bullish pivot will be at the 5975 levels and the bearish pivot at the 5950 levels.

The bias is towards the bulls and hedging for unforeseen circumstances, the markets are likely to rise higher.