NIFTY SHOW- BULLS CHEER

Nifty rose gaining 63 odd points with overall  positive market breadth with 862 advances to 609 declines.The reason for the cheer was the favorable outcome of RBI policy.The RBI cut the repo rate by 50 bps to 8% for which markets were being awaiting for past 3 years, while the CRR stood unchanged  at 4.75% effect from 17 April 2012.Rally in the European markets pushed the markets higher ,further boosting the sentiments.
                                                                                                                                                         The nifty is now trading around  the 20 and 40 DMA levels.On the move upside it might a resistance at the upper boundary of the wedge,we need to watch whether this rally makes its move upside or dissipates and reverts  testing boundaries.Whole day the markets looked cheerful and were attempting to move higher gradually in the day.The policy outcome has fueled the bulls for the rally ,we just need to confirm whether there's enough fuel in the bulls to travel higher enough.
                                                 The momentum indicator has given a positive crossover on daily charts.While the MACD is still below the zero line.Successful violation of the upper boundary of the wedge will boost the sentiment further taking markets to higher levels.
                                                                         Global cues remaining supportive markets likely to trade higher in coming days.Watch for 5370 and 5500 ,as they be signify vital resistances on daily charts.