MTECHTIPS

MTECHTIPS:-NIFTY

Nifty gave a negative opening on Friday and the index witnessed a range bound session throughout the day, as traders looked to book profits in weekly positions. The final session was very positive, as the index gained sharply to close with marginal gains for the day, capping a very positive week.NIFTY has closed at its highest level after 4th of May, 2012. Nifty has made a bullish engulfing candlestick pattern on the weekly charts thereby engulfing the real bodies of candles of the last 4 weeks. Nifty has also closed above the 200DMA at 5066 levels after bouncing from 4770 which was just 50 odd points away from the 200WMA at 4826 levels. This week,it is important for nifty to sustain the 200 DMA levels at 5065 and build up from there on towards possible 5200-5300 levels, Till Nifty doesn’t breach 4950 this rally can sustain for short term.