Nifty set out on a bullish tour

The markets rallied after one day's pause. The benchmark indices crossed the key resistance levels with the renewed buying interest from Foreign Institutional Investors (FII) and the broader market participation. The Nifty closed at 17,670.45 with 205.70 points or 1.18 per cent higher. Only the Pharma index was closed with just a 4.2 points loss. Interestingly, all other sectoral indices rallied 1-4 per cent. The PSU Bank index is the top gainer with 3.99 per cent. PSE and CPSE indices are up by 3.26 per cent and 3.17 per cent, respectively. The India VIX, down by 10.34 per cent, closed at 18.43. The market breadth is extremely positive as 1,750 advances and 335 declines were recorded. Adani Power, Tata Elxsi and Infosys were the top gainers today. About 54 stocks hit new a 52-week high, and 275 stocks traded in the upper circuit.

The markets rocketed higher, with renewed buying support from FIIs. The Nifty negated yesterday's bearish engulfing's implications and formed a fresh bullish engulfing candle. Today's move is one of the strongest bullish bars in recent times. After trading in the 700 points range, it gained 517.5 points net weekly.

On the other hand, the 21-day moving average crossing the 50DMA is a short-term bullish sign. As the Nifty is trading above all key moving averages, no bearish signs are visible. The RSI has entered into a strong bullish zone with today's move. The Nifty has retraced 70 per cent of the prior fall. As stated earlier, the breakout targets are near 17,700 levels, which is already achieved on Friday. A close above this level, the targets are open to 18,100-200 levels, where the sloping trend line resistance is placed. A weekly close above these levels will reverse the downward trend implications will be negated, and the index can form a new lifetime high. The broader market participation is a positive factor. Be with a positive bias as long as it trades above the 17,387-422 zone. There is no chance for bearish positions now.