Anand Rathi: Charts indicate more upside

Anand Rathi in its technical report said that the Sensex and Nifty have exhibited a bullish candlestick and they have gained ground. The
pattern formed is an upward bar reversal, where the low of the bar is lower than the previous bar's low and the close of the bar is higher than the previous bar's close.

This has bullish implications and it indicates that there is buying support emerging at lower levels.

Based on the chart pattern developed to date, the current bias is positive and hence, one may hold long positions with a stop loss of 3300 (Nifty) and 11,300 (Sensex) for the time being.

On the resistance front, should Sensex move above the resistance level of 11,620 and the Nifty above the level of 3400, the next significant resistance would be around 11,850-12,000 and 3525 for the Sensex and Nifty respectively.

On the average front, the averages are in a positive phase and are rising. This has bullish implications, indicating the current trend has a positive bias. The MACD oscillator continues to be in a buy mode.