Nifty_Medium Term Positive bias

On December 10, the Indian markets witnessed a strong opening. The gap was more than 2%, well above the record high of 6,357. However, during the day, the index eased slightly. Eventually, it closed at an all-time high.

The daily chart is exhibiting a breakaway gap, indicating the change in sentiment is strong and the coming move will be powerful. We maintain our positive stance for the coming weeks; we expect higher levels of 6,400 and 6,550. On the daily charts, the bullish breakout from the triangle is still intact. Moreover, on the monthly charts, the RSI is displaying a value of 61, suggesting scope for upside in the coming months. However, on Monday, it ended in a bearish candlestick formation. Weakness below the candle’s low could attract some profit booking. The breakaway gap could be filled before prices resume the uptrend. The daily RSI momentum oscillator is exhibiting negative divergence, signaling caution. A close below 6,280 would indicate that the current momentum is fading. In the medium term, 6,170 and 6,060 could act as the demand zone.

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