Inside day pattern was formed. In candlestick language it is a bullish harami.This pattern shows indecision and in this case could mean an indecision to continue with the recent downtrend from 5629. The longer the black candle and the white candle, the more forceful the reversal.The higher the white candle closes up on the black candle, the more convincing that a reversal has occurred despite the size of the white candle.Today;s candle was however a little small for this. However the pattern is powerful and the rally may have resumed from yetserday's low at 5268.
Rsi14 has turned above the 50 mark and stochastics is about to give a buy in the oversold region.The 50 and 200 dema have given a buy since two days.
The fall is well channeled with resistance at 5351 and support at 5163.This support coincides with the support from the downtrending channel from which Nifty broke out recently. Test of the trendline after breakout is very classic and a confirmation of bullishness if the trendline support holds.So holding the support at 5163 is very important for the ongoing rally. The green neckline support is at 5232.
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