Medium Term Trend: ↑UP (Changes to down below 10350)
Bulls Make a Comeback: Nifty opened around 10800 levels and after sustaining there for almost entire day, it surged in last hour and raced past 10900 levels. It closed at 10900 up 160 points,
On Wednesday, Nifty had taken a beating down, after touching 10820 it had dropped to 10600 levels in a vicious down move hence today when markets again started trading around same level the skepticism was high which actually fueled this rally aided by short covering in the end.
Franky speaking (till yesterday) we were not expecting 10550-600 to hold and had even suggested that it could break in days to come but as soon as 10800 was hit today, we changed our views & as it turns that not only 10800 sustained it even pushed Nifty above 10900 levels.
Now that we have made a new high, there are chances that correction which started from 10850 levels few days back is already over (in choppy moves we witnessed in last couple of days) and now has opened a new leg on the upside.
Technically its possible for Nifty to touch higher levels 11100-11300 from here and for any bearish scenario to emerge Nifty must break below 10740 and then 10600 levels in next 2-3 sessions ( chances of which are looking extremely slim now).
In last 3-4 weeks we have seen couple of corrections and both were sideway correction which did not do much damage pricewise ( just wild swings in a tight range). Now a pricewise correction is also due in Nifty but it seems that its still some distance away. Lets keep an eye on the current upmove and when it starts maturing out then we will begin to worry about it.
Happy Trading!
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