Market Technical View

Getting Back To Square One

The Nifty gained 51 points over the day to close at 5103. The bull
party continued yesterday as well as the indices rallied further
and closed above the resistance levels of 17100/5074 that
provided supply the whole of last week. However the
discouraging aspect of the trading action was the fact that the
markets rallied on low volumes and not-so-great breadth. The
bullish reversal pattern that we had pointed out at 4800 levels a
couple of weeks back saw its target of 5120 almost done
yesterday. The technical set-up remains strong and hence
further upside can be expected in the near term. We still do not
have any topping out patterns on the hourly or daily charts as
yet. Interestingly, the daily oscillators are in buy mode and below
the overbought zone, which is a big positive. The DM/ADX
indicator is setting up for a major buy trigger that should be
confirmed in the next 2-5 days. The ongoing “V” shaped reversal
should take the markets to their Oct 09 highs sometime later this
week. Overall, the ongoing rally should only get stronger with
better breadth and volumes in the days ahead.

Note: More intra-day opportunities will be provided
live during the market hours

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