As the markets have been climbing higher from the lows of 18th Feb. It is up more than 10% now.
What is the strength here and how it can move from here?
New High New Low index is above zero on all the 3 periods, monthly, quarterly and 52 weeks. No visible weakness yet. This pattern requires the market to reach for further higher levels. Stocks that are above their 50 day moving average (above 50 EMA) is 64%. When this index value goes above 75, market is overvalued and ready for a sell off. Last week this index was at 74.53. What a beautiful pattern the market is giving, showing that, I have space yet to cover, don’t sell now? Indicators really talk and convey great messages.
Among the market indices, 89.47% of BSE indices are bullish, 79% of NSE indices are bullish. Among the 116 industry group indices only 55% are bullish, again giving indication that there is more to come on the upside.
After having hit a peak – the Nifty, Sensex & Bank, Nifty gave back some gains on Friday. There should be a breather for a couple days and then we look for the market to go up again. 11750 on Nifty and 39000 on the SENSEX are likely to be breached before elections results are out.
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