#118 Nifty Update: NIFTY on the Verge after Positive Breakout!!!

In my last post i mentioned that we were in consolidation phase and we expect a breakout very soon!!! Breakout has been confirmed last week and it was strictly to the principles of “Descending triangle”. Technically speaking, we saw a breakout on Wednesday on the upside from the triangle and for confirmation we got three consecutive close exactly above the trendline. Now resistance line has changed his role to support line as you could notice in the chart. Top first circle shows that NIFTY has been closing above trendline and short term moving averages for three consecutive days. Second circle , as i mentioned in last post, is a possible crossover of 100 SMA (red) over 200 SMA (white) after almost 2.5 yrs. So, NIFTY is on verge because traditional rules i.e., triangle breakout and moving crossover are almost signalling long term bullish while indicators have yet not confirmed the bull trend. What to do than?? Strategy as per my knowledge is starting buying longer term investment stocks and add on each dip upto 5200.Keep a stop loss of 5117 if the market goes worst. 1st Target on the upside is 5600 and second 6300 as per the breakout and triangle formula. A lot is based on monday opening. We are expecting a positive opening on Monday as Reliance industries posted results better than expected and some parts was in-line. So go long on NIFTY. Instruments to look for long term are Pharma sector and NIFTYBEES. Anyways will post you guys as soon as we get some more confirmation on the bull side.

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