Markets on a strong bullish note
Initial target of 17,040 is also met, and very to the 17,265 target
image for illustrative purpose
The market closed at another new high. The market capitalisation reached the highest ever level to Rs250 lakh crore. The Nifty up by another 201.2 points and closed at 17132.20 points. The BSE Sensex up by 1.16 per cent, closed at 57,552.39 points. The Nifty Metal and Infra indices are up by 1.5 per cent. The IT index is also up by 1.35 per cent. All other sectoral indices are up by 0.50 per cent to one per cent. The overall market breadth is almost 1:1 as 969 advances and 965 declines. About 102 stocks hit 52 week high, and 122 stocks traded in the upper circuit.
With the two consecutive days of a 200-point rally, August month ended as one of the strongest months in the last one year. The Nifty rallied 1,387 points or 8.81 per cent during August. We predicted this kind of sharp move earlier during the consolidation period. It has broken out of an upward channel and closed above the upper Bollinger band. The indicators have reached an extreme overbought condition. Our initial target of 17,040 is also met, and very to the 17,265 target. The market is on a strong bullish note, and no bearish signs are visible. As long as the Nifty sustains above 16915-952 zone be with a positive bias. By trailing stop losses to the higher level, continued the long position. But, As Nifty reached the extremely overbought zone, it may enter into another small base consolidation. Only below 16,376-565 zone, the market turns bearish. The high probability of consolidation is above 16,765. Let us wait and see the behaviour for the next two to three days. We may get clues in the near future.
(The author is financial journalist, technical analyst, family fund
manager)
