Nifty Is Still in Bullish Mode???

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After a very surprising huge rally of more than thousand points in Nifty, it is in little correction mode. But after today’s closing it seems that Nifty will be Bullish throughout this year provided it does not breaches 5217 which is the high of the January. Many retail investors missed this rally as they were not believing on it.  So one can buy on dips till 5217 on Nifty is not taken out.

Reason One February Closing :-

• As per a data from many previous years it has shown that Januarys high when taken on monthly closing basis Nifty is always managed to rally throughout the year and vice versa.
• So January month high is 5217 and February closing is 5385.20 which is well above January high so there is a possibility of this year as bullish for Nifty. So only buy on dips whole year till 5217 is not taken out on monthly closing basis.

Reason Two Broken Multi Month Falling Trendline:-

• See below chart which is monthly chart of Nifty which is showing strength by closing it above the trend line which is not broken for last 15 months. So this is very strong sign of bullishness.

For Further Reading,

Nifty Positional Update, Nifty Technical Analysis