Break out with volumes

The Nifty has closed in the positive today and is now
expected to head higher till 5300 with support around 5232
in the short term. A key support in the immediate run would
be around 5232 and resistance will be faced at 5300.
Of the 30 stocks of the Sensex, Jindal Steel and BHEL are
expected to move up further going forward.
The Nifty has broken out of a triangular pattern with a
break-away gap and has also closed above the 20-week
moving average (WMA) ie 5194, which is a positive sign for
the market. The Nifty is now expected to retrace 61.8% or
78.6% ie 5300 and 5450 respectively of the previous fall
from 5630 to 4770.
Other technical observations:
On the daily chart the Nifty is trading above its 20-day
moving average (DMA) and 40-DMA ie 5085 and 5082
respectively. The momentum indicator has turned in the
positive mode on the daily chart.
On the hourly chart, the Nifty is trading above its 20-hour
moving average (HMA) and 40-HMA ie 5184 and 5171
respectively, which are crucial intraday levels. The hourly
chart momentum indicators have turned into positive mode.
The market breadth was positive with 1102 advances to
405 declines on the NSE.
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