The Biggest rally since 2011 (Price+Time) continues!

Nifty Daily chart:

Nifty 60 mins chart:

As show on the Daily chart, 5350 is the level below which there was big Gap down opening and Gap up actions during past months failed to take prices above this level. We therefore continue to believe 5350 – 5400 as crucial resistance level and break above this will open further upside targets.

Over medium term we continue to believe that 5700 is the ultimate resistance area and it will be very crucial to see price movements if and when we reach there. For now as seen on 60 mins chart, the red channel is intact and as long as 5250 – 5260 level is not broken on downside we will continue to be positive on Indian markets as a whole.

Midcap index continued to show strength and there is no deterioration in the Advance – Decline ratio even now. We would refrain ourselves from going against such a strong trend and giving levels where current rally shall end but would rather approach the scenario in anticipatory model and we will know as and when prices reverses by breaking important supports and channel lines. Till then enjoy the uptrend as long as it continues.

For long positions, please trail stops near 5260 levels for now.