5400 levels very much on cards: Rohit Shinde

Rohit Shinde, Asst VP, Technical Research, CD Equisearch Pvt Ltd, in a chat with ET Now talks about current market scenario.

When I look at the charts, I really cannot see how the market stops before 6000, do you think this may be the start of a very big move, do you think we are close to that move?

Yes, I perfectly agree with you. What I am seeing on the charts basically is last week what we have seen on the weekly charts, 4912 was the 26-week exponential moving average. We are trading much much above it now. That is the first reason A.

The reason B being that we are having the MACD histogram, that has also moved from -88 to -77. That is again a very strong indicator and still we have two days remaining in this particular week and the third point is on the ADX on the daily charts. We moved above the 30 levels, are currently at 32 levels. We are getting good strengths on the upside. So now the Tsunami and etc etc things going ahead is looking very very bright for the markets because what has happened after the Congress government came into power, the markets have really started moving up and they are making a reflection on the weekly charts on the opposite side.

The time before the Congress government came in power, the markets were going completely down. From thereon, it went up, so 5400 we can easily expect. What we are seeing in the last week also, it was an upward rising trend channel, it broke above that with good volumes day before yesterday. Yesterday also it was a good move. So as of now, 5400 is very much on the cards and going ahead we can also move up to 5500 but over there, we can get a slight resistance. Then you have to review the situation after over there if in case beyond 5500, it may just cool off little bit down to 5300 levels.