Nifty surged towards its yearly high with moderate volumes and +ve breadth.Important points for today.
1.Nifty up by 1.75% with 2.45 breadth.
2.19th day of rally since 4786 lows(33 days of downturn).
3.Nifty has retraced 95% of the fall in 57% time.
Nifty's rally continues for the 9th day without any significant daily correction.Nifty likely to take out 5400 within 1-2 days.Though the momentum of the rise is fast but the volumes and breadth are moderate only.This can well be the last rally of the bull market trying to suck in people.Volumes and breadth only indicate lack of conviction on the part of people towards the rally.Of the probable scenarios I look forward to now-
i)Nifty to move sideways between 5000-5500/5600 for next few weeks before reversing.
ii)Nifty to reverse from these 5300-5400-5500 levels and makes a big cut within 8-10 trading sessions after reversing,as it really does on the first big cut after a massive bull run.This would be difficult to trade because 5-6% correction is normal ,so any big cut happening immediately after 5-6% can happen in a matter of 2-3 days.
Look out for other indicators like-$index,S&P500,and European indices for further clues.
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