Sep 1 update

Nifty bounced back today above 5450 with moderate volumes and +ve breadth.Important points for today.

1.Nifty up by 1.4% with 4.4 breadth.
2.7th day since the highs of 5549.

Nifty bounced strongly and closed well above 5450.Breadth was 4.4 and was the highest since the rally started from 4786.This could indicate that the bounce from 5350 is just a retracement of the fall from 5549-5348.Since a mature rally does not exhibit such +ve breadth usually.If such is the case then Nifty should break 5350 in volatile manner in the coming days.But if Nifty continues with the uptrend then it could be heading for the new highs above 5550.Bothways,I see Volatility increasing in Nifty,so sharp moves on either side can be expected.Since Sept closing will also be a quarterly closing,so I expect that the chances of Nifty breaking down in Sept are quite high,since the rally from Mar09 has lasted 6 quarters after a fall in 4quarters(Mar08-Dec08).