Technical Analysis- Nifty - Keeping The Best For The Last

The Nifty lost 18 points over the day to close at 5169. The
markets once again traded in a range yesterday but with a
negative bias this time. After a flat start the Nifty corrected to get
close to the lower end of the applicable trading range of 5150-
5200. It seems that the bulls are just buying time before a
confident move above 5200/17500. Most of the technical
indicators remain positively placed and hence momentum should
pick up in the next few trading sessions. The candlestick patterns
formed in the last few days hint at consolidation before a rally.
The oscillators are slightly overbought but are not an immediate
concern. The moving averages are well placed below the price
action and would provide support in the 17000-17200 zone. After
17500 the next big resistance for the Sensex is seen at 18300,
which is based on gap and pattern studies. With the US market
(DJIA) sustaining well above the level of 10500 in the last few
days we have a scenario of a quick run-up to our MT target of
11000 in the near term. Overall, the bulls seem to be keeping the
best for the last and hence holding on to longs is advisable.