The Nifty for the first time since May 2008 closed above 4800 after hitting an intraday high of 4842.20. Strong rally and short covering in the frontline stocks helped the markets surged 1.5%. A spectacular rally in the RIL and SBI helped the markets to surge. Global markets too were very positive. More of the frontline stocks outperformed the markets. After running a quite in the past, Midcap stocks witnesses profit booking today.

Nifty after making an intraday high of 4842 before settling at 4805 levels. Sensex made a intraday high & low of 16232.16 & 16030.56 before closing at 16123.67. As mentioned in my last blog that the markets will continue to rally and the Nifty can go upto 4836 levels. Nifty faced resistance at the trendline. And from the same levels, nifty corrected nearly 40 points, but closed above nearly 22 points. Yesterday Nifty had given a breakout from the Triangle pattern. But continued to face resistance at the parallel trendline.( marked with Yellow) Nifty have closed marginally below the trendline. In the closing hours Nifty fell down sharply from 4846 levels. Breakout above the trendline is expected with volumes. Volumes in the markets were pretty good, but Nifty could not close above the same. Close above the trendline will take the Nifty to 4889 – 4925 levels. Nifty will have good support at 4748 levels.