Nifty

#157 Nifty Update: Tickling Nifty

Nifty was tickling traders today. Today opened with a gap up on back of good unemployment numbers in US. PMI numbers had been improving in western countries. Today SBIN was the most beaten in frontline scripts. Weekly charts are showing some bullish confirmation on the charts. Technically i noticed some interesting things on weekly chart of Nifty. Three instances has been identical on the chart. First, was at the end of week on 08-09-2012 when nifty took support at 100 Weekly EMA and reversed with “Bullish Piercing” pattern of Candlestick. Post confirmation we got nifty movement from 5332-6100. Second instance was proven on 18-04-2013 when nifty again took support at 100 EMA and reversed with another strong pattern “Morning Star” to get move from 5780-6200 post confirmation weak. And last weak was the third instance when NIfty has reversed from 100 weekly EMA and gave third reversal patter ‘bullish engulfing”…So now we may assume we should get a short term rally from this point. So every dip is buy as i have been intimating since long. Nifty should close above 5852-5860 and will resist near to 5915-5975  for some days. So still i am biased towards long side with SL of 5730-5762 on closing basis.

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