Nifty continued with its upmove and closed above 6000 levels with moderate volumes and +ve breadth.Important points for today.
1.Nifty up by 0.8% with 1.9 breadth.
2.4th day since the lows if 5690,18th day since the highs of 6338.
Nifty closed above 6000 levels but moved in a very narrow range of 49 points during the day.Till today Nifty has retraced about 53% of its fall.The scenarios that I have with me are:
Bullish: Nifty will undergo mild pullback upto 5850/5900 and then continue its upward journey.
Bearish:1)Nifty may reverse from here from around 6050 levels and make a deep cut below 5400 in next 6-8 days.2)Nifty reverses from around 6050 and makes a low just below 5690 level(with higher weekly closing though) and bounces back towards 6300 levels.
Which of the scenarios will play out is difficult to say(or may be some other scenario).I look for weakening of the upside strength here and then reversal first.
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