Bullish moving averages

The sharp uptrend, which started from a low of 13303 on Thursday, took the Sensex past 14,000 and Nifty past 4000 on Friday.

HDFC Securities expects a bullish market once the Sensex crosses 14,180 and the Nifty over 4100. The Sensex has a long way to go on the upside and will have a potential target in the 14724-15289 range.

According an analyst with Anand Rathi Securities, based on the chart pattern developed to date, the support level for Nifty is at 3830 levels and for the Sensex at around 13,300 levels.

Violation of these levels will have bearish implications and, hence, one may use these levels as stop-loss levels for long positions for the time being.

Indices are trading above the five-week simple moving average, which is above the 20-week simple moving average and the 20-week is itself above the 50-week simple moving average. This indicates that the trend as signified by the moving averages is bullish.