Today was the first trading session for May and although we saw many negative news and sentiments for a lower low formation to be underway today turned out to be a White Marabuzo. Generally a White Marabuzo occurs on the start of a new trend and if the low of 8220.45 is not broken we may be at the start of a new trend which could take Nifty to all time highs. This however does not rule out the possibility of 8220 being broken and a new low being formed as the market is always correct and we are merely followers.
The possibility of the price continuing upwards is to the greater side as we closed above the 200 dma which stands at 8248.61 which should now act as support where people will try to defend a closing below this level. The two main resistances Nifty will face are 8400 and 8500 mark above which there should be smooth sailing with the technical indicators also giving a buy signal around those levels.
Here is the attaching daily price action of today’s move, please check it out. For tomorrow if the prices cross today’s high and sustains I would be bullish on the coming days.