On the verge of breaking out above 5180 or was it a big bull trap ???

Today Markets witnessed an unexpected rally from the the level of 5063 to 5151 in the last two hours of trading. I am using the word " Unexpected" because the Asian markets were down in the red, HangSeng was down 1%. European Markets too opened in the red but recovered later only to post gains ranging from two to three tenths of a percent but our Markets after the stupendous rally posted gains around 1.6%. Global Markets could spoil today's big rally as European markets have closed down one and a half percent each and as i post this blog U.S markets are also trading down almost 1%. After Dubai drama now the medium term outlook for public finances in Greece looks miserable. Its the first time in 10 years that a major ratings agency Fitch has cut its rating on the country below single-A and Greece is the only country in the euro zone to be rated below single-A.



Nifty View:

Nifty has closed at the striking distance of 5180, if world markets would have supported then we could have witness a gap up opening above 5200 but that was not the case as all world markets are down anywhere between 1-2%. Today Nifty moved up exactly from the level of 20 dma which is placed at 5057. On the upside there is only 1 major resistance i.e 5181 but on the downside there are 3 most important levels to watch out for:

1) 5110
2)5070
3)5050

Under any circumstances Nifty should not break 5050 and if it does so then the short term uptrend will end completely.




Have a nice trading day

Regards

Ankit -09899899989