Yesterday our Indian Indices remained largely flattish and managed to stay above the 6080 levels for the time being which is a bullish sign of the 6118 target getting reached sooner or later as envisioned.
But as I have been mentioning the target is 6118 but the stoploss is poised at the 6000 mark which is a cause of concern for the participants who wish to take positions at current levels. Though historically the markets have turned bullish above the 6080 levels giving raise to a lot of unheard backbenchers to overperform the Indices yet these highs are considered as the selling barometer.
The charts have pointed that the markets are now in a phase of starting a new upmove above the 6080-6108 levels to the 6246 zone which would also mark the highs for the current uptrend that has started from the 5200 mark just a few months back.
Technically speaking the charts have shown a Flag pattern of breakout above the 6068 levels which target of the 6246 levels for time being with possible stoploss at the pivotal support level of the 5980-6000 zone for the pattern.
Given the backtesting of the pattern in the risk-reward ratio which works out to the 1:3 chances, there would be no harm in getting into the trade of Nifty longs with stoploss of the 5980 on the spot markets……..
Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)