Nifty to start a new rally after crossing 5950...

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From past nine months after making an important pivot low of 4770 prices started to form higher high and higher low which is a health sign and precisely moving in a rising channel. The overall structure looks positive for Nifty and can move higher from this levels.

Nifty resisted to 5950 for many trading sessions and opened with a gap up, thus crossing the important level of 5950. Now 5950 followed by 5840 will act as an crucial support for Nifty to achieve 6150 level. Again minor supports are  placed at 5980 levels which can be utilized as a stop loss for intraday trading.

Nifty opened with gap up for consecutive 2 days and moved in a sideways direction in the entire day. This was previously happened in April 2011 where Nifty opened with a gap up twice and moved up more than 500 points.

Moving Averages  20 EMA and 50 SMA is positively poised  as 20 EMA is still above 50 SMA. Momentum Indicator RSI has exhibited negative divergence and we are cautiously positive for Nifty. Any move above 6150 will negate the divergence.

Nifty is probably making a wedge formation or it is moving in a wave iii of wave v. Wave iii may end near 6150 level and will start wave iv. The only concern is may indicators are showing negative divergence.

Nifty to move till 6150-6250 level and the outlook looks positive for Nifty to achieve this target. 

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