The Indian markets are riding the wave of upswing in global market. Rising crude oil prices reaching a four month high , favorable Chinese data and Fed reluctance to increase the interest rates have helped the global markets in recovery.
Though IMF has cut the global growth forecast from to 3.5% for FY17, it has retained the growth forecast for India to 7.5%, making it the fastest growing large economy in the world. This may help a larger chunk of foreign investment being redirected to India.
After correcting and being in a downtrend for almost 13 months, Nifty seems to have found strength to break out of the falling channel. A spate of favorable news on normal monsoon, lower inflation and hopes of economic recovery has contributed to improvement in the market sentiments.
The Triple Trend Oscillator has given a buy signal indicating a long term change of trend. The trigger line on the monthly Nifty charts has crossed over zero indicating resumption of uptrend after almost a year. The trigger line crossover has in the past reliably indicated a major trend change. This is coupled by a channel breakout by Nifty which revises the upward target to 8600.
On the daily charts Nifty has formed a bullish inverse H&S formation with neckline at 7800, which again provides an upside target of 8600 on Nifty.
Nifty may, however face some resistance at 7975 and 8330 levels on the way to 8600.
See also : http://eqtrend.blogspot.com/2016/03/nifty-probable-elliott-structure.html
