– Tuesday’s session was considered a pink rally day as the market made a rebound from the day’s low and closed in the upper half of the day’s range, making it the first day of an attempted rally. The Nifty managed to stay above Tuesday’s low of 10,583, yesterday as well as today.
– As today’s action qualifies as day three of an attempted rally, we are changing the status of the Indian market to a Rally Attempt from a Downtrend.
– Today, the Nifty managed to retake its 50-DMA and closed above that level.
– From here, we would prefer to see a follow-through day before shifting the market to a Confirmed Uptrend. Should this occur, the focus will be on ideas that show the best relative strength with good accumulation. Stocks that recover the quickest tend to lead the next run.
-On the flip side, if the Nifty breaches its recent low of 10,583, the market will be moved back to a Downtrend.
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