The Nifty Takes a View.

A dull start to the day changed into a blistering rally after the first two hours of trading. In my earlier post, I had suggested that the nifty was at a point of decision. This turned out to be a good suggestion. The Index moved. up to cross 5000 and then 5050, all in half a day.

The short term trend is up, confirmed by price action which has seen a breakout of two seperate levels: 4900 and 5050.

Is this just one more bear market rally, or is this the start of a new bull market? This question is asked each time the market stages a dramatic rally. The answer is always: Let the market tell us. What we know is this: The Nifty is in a short term uptrend. If the Index retraces and the retracement makes a higher low, this will be the first sign that the trend is changing to up. Let us wait. Meanwhile, let the market show us where it wants to go.