The bullish strength in Nifty has been gaining momentum ever since it bottomed at 8,000 levels, riding on the favourable news flow regarding monsoon and Greece. The talks of bubble in the Chinese market has only added to the positive sentiment in the Indian market.
The extent of bullishness can be judged from the following hourly chart of Nifty. The three primary TOs have been moving upward in a prefect conjunction to form synchronized bullish alignment on the TTO. Further, the gap between the three TOs has been widening indicating the trend is unlikely to weaken soon.
This is a highly bullish scenario : The extreme short term momentum (the black dotted line) which is in corrective mode with its downward direction has been unable to contain the prices, which have been moving upward in spite the short term trend showing technical slowdown on the chart (see the blue arrows). This indicates extreme buying pressure which is pulling the prices up, defying gravity.
The trend can further strengthen if Nifty keeps its head above 8360 on closing basis and a surprise on the upside is not ruled out in the medium term. However, should Nifty fails to keep above 8360, we may again be riding a trip down.
