==>> Buying in Index based shares lead the rally

Today Nifty again made a new low of 4369.8. In the last 2 days Nifty has made new lows below previous low of 4448 which was made in the Jan carnage. But luckily the close for both the days was above the same. but the making of new lows can prove to be a bad sign for the market. In the close session, we saw some buying in the frontline stocks, that lead good short covering in the market and the Nifty jumped from the low of 4369.8 to close at 4459.8. Sensex also made a new low as compared to the low that it had made in the month of March (14677). Sensex immediately bounced back after making the new low. The rally that we saw in the closing session was just unrealistic. It was just and attempt to close he Nifty above 4440 and sensex above 14700. The candle stick pattern formation in the Sensex chart shows that we may see a pull back. Both the Nifty and the Sensex are in the over sold zone.

In the yesterdays blog it was mentioned that we will some bounce back. Sensex again opened with the downward gap. But it was not that severe. Inspite of not that great movement in the global indices, we saw some pull back in our markets. Our markets will definately bounce back within a day or so. Will that sustain or no, that is the issue all about??? Futher movement will be decided after 1 or 2 trading sessions.