Nifty - All Is Well

The Nifty gained 159 points over the day to close at 5144. The
markets witnessed one of its best days of rallying yesterday in
the last few months. The upmove was with excellent momentum,
volume activity, breadth and not to forget that India was the only
big mover in the region. Without a doubt the rally comes as a
surprise as the technical studies were on the negative side.
However the mentioned support level of 4930/16600 has worked
wonderfully once again as the indices reversed from around the
same a couple of days back thereby restricting the fall. This only
means that the indices are not ready to breakdown and hence
we once again have an upside breakout scenario. A few studies
have changed for the better. The averages are back below the
price action while the oscillators remain close to the “oversold”
zone. The RSI indicator has seen a trendline breakout while the
candlestick pattern formed is bullish. The DM indicator has also
reversed its sell trigger. Overall, the excellent turnaround move
yesterday has only strengthened the set-up and hence we await
a breakout from the 4930-5180 area.