Breaching 6000 may signify renewed uptrend: Louise Yamada

Market sentiment has been buoyant on the back of continuous gains that the indices have been witnessing since almost the past one week. As the Nifty inches closer to the 5,800 mark, talks of a renewed uptrend too are picking up pace.

"The Nifty may climb to 6,000 once 5,800 is broken. And this may signify a renewed uptrend," said Louise Yamada of Louise Yamada Technical Analysis. She sees support levels around 18,175 and 5,300 for the Sensex and the Nifty and said the market is currently in a sideways trading mode. In January this year, when the market was suffering from acute pain on the back of rising volatility, Yamada had said the Nifty could see a pullback to 5,500 if it remained below 5,700. Meanwhile, she saw short-term support for Sensex at 19,000. "Sensex and Nifty should see sideways movement ahead," she had said then and continues to have the same outlook even now. Further, talking about emerging markets she said these markets have been outperforming the developed ones since the beginning of this century. "They have been in a structural bull market and they are going to have setbacks. But this seems to be the end of cyclical setback for India," she added. Where does US stand? Though not too buoyant the US market too has been sailing through. Yamada said Dow and S&P 500 are in a phase of consolidation currently. "The uptrend has not broken yet. It is looking stable as of now," she added. The boiling oil Crude continued to exhibit weakness on Monday. Yamada sees a new uptrend in place for crude. "We have higher targets for oil over time. There is a short-term support for Brent crude is seen at USD 107 per barrel. And the support for NYMEX crude is seen at USD 96 a barrel," she said.