Nifty Close to bearish engulfing

After giving a breakout from the triangular pattern, Nifty on Mar 26, 2010 continues to trade on upside surpassing the resistance of 5270 and just shy of 5310—the previous swing high made in January when it had formed a monthly bearish engulfing pattern. The index is trading in an upward parallel channel and above 5310. The next target is 5470—the upper end of the parallel
channel. On the lower side, 5260 and 5210 are good short-term supports. The daily KST continues to be in a sell mode, but the hourly KST has come into buy mode making the bulls comfortable. Nifty has given its seventh consecutive positive weekly close in a row, which depicts the strength of bulls. With this, we continue to maintain our short- and medium-term bias up.


Nifty on the hourly chart is trading above its 20 hourly moving average (HMA) and 40HMA placed at 5240 and 5234 respectively, which are now its short-term supports. The hourly momentum indicator KST has turned into buy mode and is now trading near the zero reference line.


Nifty on the daily chart is trading above its 20 daily moving average (DMA) and 40 daily exponential moving average (DEMA) pegged at 5136 and 5082 respectively, which are now its short-term supports. The momentum indicator (KST) has given a negative crossover and is trading above the zero line. The market breadth was negative with 572 advances and 772 declines on the NSE and 1,200 advances and 1,651 declines on the BSE.


The Nifty and the Sensex added 22 and 86 points to its kitty respectively.