Nifty rebounded strongly with good volumes and very +ve breadth.It was best day of upmove in many months.Important points for today.
1.Nifty moved up by 3.5% with 7.0 breadth.
2.1st day of upmove after 21 days of downturn.
3.284th day since Mar9,2009 when the bull market began.
4.Biggest upmove in Nifty since 14th July 2009.
Today, the Price action was big +ve alongwith with +ve breadth.Such a +ve move indicates 2 scenarios to me.Firstly, Nifty after completing a-b-c correction of 725 point rally is again starting its 5 wave impulse upmove targetting 5300-5550.OR secondly,Nifty has started the dowturn of the ~2800 point rally of last 13months.The fall from 5399 -4984 is Wave1 of this downturn, and Nifty has started with Wave2 right now.In this scenario,Nifty should remain below 5399.
One important thing to take note-After todays big +ve breadth ,I expect Nifty could take atleast 3-4 days to wear out the optimism of today be it any scenario.
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