Nifty closed positive for the 5th day running and in the process also closed above the resistance level of 5215 mentioned yesterday. Generally speaking while there have been runs of more than 5 days fact is that more the number of continuous days, greater becomes the chances of a correction / flattening of trend. Its hence essential that we do not become overly optimistic but have a trailing stop to ensure that profits that are available do not get missed in a reaction. Yesterday markets moved and closed just above our 5215 level. Nifty now faces resistance at levels of 5285 and 5335. Supports come in at 5215 and 5140.
US Markets yesterday climbed strongly yesterday & in the process also crossed the 200 day EMA (& DMA). If the rally sustains, this can augur well or Indian markets as well since we have pretty high degree of co-relation. On average, historically whenever Dow has closed above the 200 day EMA, there is a probability of a move in excess of 5% from that point onwards.
Regards
Prashanth
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