Technicals for 26th feb,2009

Daily chart

Nifty touched our second resistance point at 2789 which attracted profit booking, but managed to close 28 points higher. This action confirms the 'hammer' mentioned yesterday. The hammer is a one day bottom reversal pattern . Volumes on the hammer day should be less than that of the confirmation day. That is the only thing lacking as todays volume is less than yesterday's.

So one may take longs with a strict stop of 2661-2677 area. More details in the 30 minute charts.