The Indian Indices Nifty and Bank Nifty has rallied for last 6 days. We had longs from 5375 and 10400 levels. See the post here yourself. What a rally.
The Bank Nifty and Nifty are now in proper buy signals.
This kind of rally is always expected when the street sentiment is so skewed to one side move and the move always happens in the opposite direction. In the earlier post we made that sentiment call.
What now. Well, Indices closing in green for last consecutive 5 days with the best ever breadth of recent times. This combined with no down ticks at the crucial mid band mean reversion point is bullish sign.
The index has held the earlier upside gap with one formed today so it surely seems that the current wave has way to go.
The next logical resistance is the 200 DMA at 5625/5630 levels and the Fibonacci resistance at 5610 levels could be possible profit taking points although watch for down ticks there.
The Bank Nifty and Nifty are now in proper buy signals.
This kind of rally is always expected when the street sentiment is so skewed to one side move and the move always happens in the opposite direction. In the earlier post we made that sentiment call.
What now. Well, Indices closing in green for last consecutive 5 days with the best ever breadth of recent times. This combined with no down ticks at the crucial mid band mean reversion point is bullish sign.
The index has held the earlier upside gap with one formed today so it surely seems that the current wave has way to go.
The next logical resistance is the 200 DMA at 5625/5630 levels and the Fibonacci resistance at 5610 levels could be possible profit taking points although watch for down ticks there.
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