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Nifty has made a trend channel since October 2009. After falling back into the channel, Nifty reached its lower support level of 5,200. Nifty received support at the lower channel line and has bounced back on anticipated lines. It is now facing resistance at the top of this channel. The Medium term oscillator (Stochastics) has started moving up after it hit oversold levels. This supports the trend of the index which is already looking strong at current levels. In line with our positive bias, the index has advanced to 5,950. This level coincides with the trend line resistance. This is a zone from where a period of consolidation is likely. Retain our bullish view on the Nifty in the medium term. However, due to the resistance at the trend channel line, the index up move can halt here for a while.


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