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Nifty setup: Medium term target of 6,050 looks certain
For reasons ranging from progress on Europe's debt crisis to a slowly improving housing market to slightly less gridlock in Congress, the economy and the job market appear better able to withstand setbacks than they were in 2011.
12 Mar 2012, 10:01 AM IST 
Shinzo Nakanishi, Managing Director, Maruti Suzuki India
The expected pattern retest of the Bullish Flag seems over.
The daily chart shows the 200 DEMA (day exponential moving average) and the weekly bearish channel converging around the 5,200 levels. The sharp bounce from these levels along with the bullish gap on Friday indicates that the odds are in favour of the bulls.
The second more important reading is the positive divergence and ‘buy’ readings on the 5-3 stochastic. The previous three instances - all below the 200 DEMA have been marked- and this is the first time in the past 52 weeks that positive divergences have been occurring above the 200 DEMA.
With momentum confirming with price, markets might witness excess of 10 per cent on the upsides and medium targets at 6,000-6,050 look likely.