SENSEX: despite having shown a GLOOMY picture on monthly charts a short term rally was expected and it is here.
The first HURDLE of the BEARISH GAP has been crossed by both SENSEX & NIFTY and SENSEX even closed above the RESISTANCE TRENDLINE.
The 5/8/13 EMA BAND which is in sell mode must turn up to give a buy cross then we can have more faith in this up move.
16962 becomes the new SUPPORT for SENSEX and it has got RESISTANCE at 17318.
NIFTY: an analyst must FOLLOW the SHORT TERM TREND first even if there is something WRONG on LONG TERM CHARTS.
Doing this i said here that if NIFTY sustains above 5149 one can go long and there will be a stronger up move if NIFTY can cross 5164-5197 ZONE which was the BEARISH GAP.
Once above 5149 it was all bullish and NIFTY has closed at 5199.
This can be a solid TREND REVERSAL DAY but one must take care at 5255-5267 levels and then at 5300
5149 is the new support as to maintain bullishness NIFTY MUST NOT close below 5149.