The Nifty declined to the low of 5,076.7 before closing with aplomb above 5,300. The index has now moved well clear of its 200-day moving average at 5,193. This up-move shows no signs of letting up and we are fed up of looking for points from which it can reverse lower.
So we restrict to identifying next short-term targets. These are 5,400 and 5,432. Since the index is past the 38.2 per cent retracement of the down-move from 6,338 peak, 50 per cent retracement will be the next important hurdle for this index.
Medium-term target on a close above 5,432 is 5,645.
The index will receive support at 5219 5,090, 5,015 and 4,916 in the upcoming sessions. The 200 DMA at 5,193 and recent trough at 5,076 will also provide interim support to the index. Traders can buy in declines as long as it holds above 4916. Close below this level will mean that a more serious correction is progress.
VIX and Nifty both are moving up