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NIFTY SHOW - BOUNCEBACK

Nifty bounced back with the splendid gain of 116 and sensex around 345 points,the global markets also supported with no negative news.The overall market breadth was positive with 1145 advances to 367 declines.The nifty has taken the support of the 200 DMA and is expected to trade higher,if nifty continues such move then it will rise further where it will face a resistance at 5500,violating the falling channel on the upside.This will generate more bullish sentiment where 5630 would seem approachable.here comes the crucial point where  it has to break the previous top successfully  attributing more evidence to the intactness of the previous bull rally.
                                                                                                                  On the daily charts nifty has made a morning star pattern giving more room to the bulls.It is a bullish reversal pattern. Currentky the MACD is below the zero line also the momentum indicator RSI has again crossed the 50 levels from downside and is rising.If the RSI continues its move above the 50 levels and proceeds higher nifty will experience bullish moves.
                                                            If the dynamic support of 200 DMA is violated then the bearish alternatives will open up.Next will be quite  conclusive about the direction of the markets

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