Anand Rathi: Charts predict bullishness

Anand Rathi Securities in its technical note says that Nifty and Sensex have exhibited a bullish candlestick and they have closed above important resistance levels.

This has bullish implications and it indicates that the current bias is positive. On the pattern front, the Indices appear to be tracing out an inverted head and shoulder reversal pattern.

This pattern has bullish implications and it raises the possibility of a sharp up move in the near future.

Based on the chart pattern developed to date, one may hold long positions for the time being with a stop loss of 3150 (Nifty) and 10,800 (Sensex).