9am with Emkay 11 April, 2011

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9am with Emkay

11 April, 2011

n        Technical Comments

Nifty

Finally, we saw some profit booking in Nifty, after three consecutive sessions of horizontal trade. This resulted into the formation of a Shooting Star shaped candlestick on weekly chart. But as the candlestick does not hold a major weight age among the family of reversal candlestick patterns, we are only looking for a 38.2% pullback of the entire rally from 5348 to 5944, which comes at 5716. The reason behind this 38.2% reaction is the overbought oscillator on daily chart and the resistance of the falling trendline. Also, 5716 is the value of 200-DSMA, which makes it a key pivot going forward. However, the key support of 5810 is still intact, which should be treated with respect, as unless that is violated 5716 looks tough for Nifty. Above all, we still maintain our bullish target of 6250 in the short term with the reversal of 200-DSMA.