Daily Technicals - Jan 3 2008

Nifty — The index opened on a flat note and saw a sharp decline in morning trade after which it rallied throughout the trading session. It ended the day with gains of 35 points.

Upward bar reversal — The index has posted a perfect upward bar reversal on the daily bar chart (i.e. the index traded below the previous day’s low and closed above the previous day’s high and close).This suggests the index should move up from current levels. On the upside index can test the 6260 levels. On the downside it has support around 6168 and 6100 levels.


Conclusion — Expect upswing to continue.