Though Markets came off its intraday highs by almost 60-odd points, it has still managed to ended the day at 6241.10 posting a decent gain of 80.15 points or 1.30% while forming a higher top and higher bottom on the Daily High Low charts.

Today, expect the Markets to open on a flat to mildly positive note and look for directions. The Markets yesterday ran up bit more on back of exit polls which indicated rout for Congress. However, speaking purely on technical terms, the Markets should consolidate a bit by the time it approaches its nearest double top resistance. Though all lead indicators remain perfectly in place.

The levels of 6295 and 6330 are immediate resistance levels on the Daily Charts. The supports exists at 6205 and 6175 levels.

The RSI--Relative Strength Index on the Daily Chart is 58.4228 and it has reached its highest value in last 14-days which is bullish. The Daily MACD remains bullish as it trades above its signal line.

On the derivative front, NIFTY December futures have added 9.08 lakh shares or 5.01% in open interest and this is certainly a positive factor very clearly indicating that fresh longs have been added in the system.

Given this reading, it is fairly clear that even if the Markets consolidate, it would do so with a certain degree of a positive bias. All lead indicators remain perfectly in place and the immediate trend definitely remains bullish even if we see some minor corrections or consolidations.

Overall, even with some minor amount of consolidation / correction, the underlying current remains in tact. The defensive stocks may out perform in case on consolidation and any downside should be utilized to make fresh purchases. Continuation of positive outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,