Why I suggested the momentum is up.?

On Monday afternoon, in ET-Now, I suggested that the trend short term is changing to up. Today (tuesday) morning before the markets open, on TV (ET-Now), I was convinced that the short term trend was up. Then, we had inflation data, with a lot of volatility. The Nifty closed higher, but just a bit higher.

Today, I thought I will share with you the reasons for this change of sentiment from down to up.

1. Acceptance of support. the Nifty fell to 5437 on Monday which was in the 5400-5450 support area. Prices almost immediately rebound from this area suggesting that this zone, for the time being is acting as support.

2. If 5450 is support, then where will the Nifty go? Towards 5600 which was resistance.

3. The Intermediate trend averages are moving up. The short term averages weere down, but they have come to touch the intermediate averages, which can provide support. This is a classic setup – short term averages decline to reach the rising intermediate averages which provide support. the uptrend resumes.

4. RSI3 is touching 20 suggesting an ‘oversold’ condition. The condition is relevant only when the trend is up, which seems to be so.

Any one of these factors is not enough to justify a bullish stance. But, together they provide the opportunity to develop a view