market has obliged by vindicating my optimistic view for today and gave a strong rally of more than 3 %.we have closed today above 3/5/8/13/21/34/50 all imp dma levels.more over we have retraced fall from 16002 to 14703 by more than 61.8 % and closed just above that .if we sustain above these levels we can see new high for sensex.
all stocks i discussed yesterday has moved up by 2 to 5%.it was a broadbased rally. good IIP nos,tax code discussions by fin minister, positive outlook by US has triggered this bullishness forgetting -ve triggers like swine flu and poor monsoon.
in this rally we are observing a typical pattern of trend reversal. whenever we are close to end of correction we see a doji or hammer pattern and next day we observe gap opening and big move of 400/500 points like we saw today.after such moves we have seen sideways moves in index for few days which confuse mkt players. better be stock specific and take yr decisions.
