Nifty closed at all time highs on Mahurat Day. This could see the target of the inverted head and shoulder pattern of 7050 which I have been mentioning and showing on weekly charts since the neckline was crossed in September 2009 and again tested in November 2009.Cross of the all time high of 6357 however is yet to be overcome.The cross of previous peak of 6284 sets an immediate target of 6631.
Resistances at 6357-6398-6587. Supports at 6290-6247-6200.
Daily charts show four consecutive gap up openings which is bullish. Friday's candle is a doji star which could prove a turning point, but only a bearish candle for the 8th can confirm it.Till this is confirmed the view is bullish as all time highs on a closing basis was achieved with 4 gapups.
The immediate target is 6365.The rising wedge has resistance at 6381.Nifty needs to trade and close above 6329 to avoid breaching the uptrendline from 5937.If breached, a sideways to slightly down correction is possible.
Nifty is capable of achieving higher targets till the low of 5937 and the 50 dema ,which indicates the medium term trend and is placed around these levels at 5954, holds.
The break of 6151 would be the first sign of weakness.Trade long with a stop of 6151.
Happy Trading !!