The Nifty retested the trendline from the June lows and closed above on December 29. With this there are three numbers to watch.
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The trendline level now is 18,230 and because it's a rising trendline, so today as compared to yesterday is a little higher, so 18,230 is point number one.
The next is the 50-day moving average, which is a higher than that 18,250 and then you have the 50 percent retracement of the entire fall from the all-time high of 18,887 which was made on December 1st this year to the low on December 26th. The 50 percent Fibonacci retracement is 18,330.
So, three kinds of levels on the upside to watch - on the trendline 18,230 then 18,249 level and then 18,330 level - these are all near term kind of indicators and the market has been trading beautifully within this kind of framework, retracements and moving averages.
The Bank Nifty is looking much stronger. As of yesterday, December 29, it closed above its 20-day moving average and 61.8 percent retracement of the entire fall. So, when an index does this, the bearish signs are over; at least for the Bank Nifty things should look up.
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Indian equity benchmarks BSE Sensex and NSE Nifty50 are likely to make a positive start on the last trading day of the year tracking strength across global markets. SGX Nifty, an early indicator of the Nifty index, rose as much as 102 points or 0.5 percent to 18,382 ahead of the opening bell on Dalal Street. Shares of Elin Electronics will debut on the bourses today.