Looks like we just had a demand check done yesterday and it seems like we have enough demand in this market. This gap up day with this kind of medium breadth action doesn't seem very sustainable. I don't see very strong market breadth for 2.2% move in the market. But again we may have strong market breadth tomorrow.
This may very well be resistance check here. This may be possible due to major short covering. People and media where bearish since last Thursday and little positive sign in the market may have forced shorts to cover and that may have lead the price very very high like today.
I would see one should watch tomorrows action very carefully as it may give us very good chance to short when it touches 5220 with .5% stop.
Big cap doesn't show any direction as well. Most big caps followed the NIFTY that adds little fuel to this really as well.
Lets see what brings us tomorrow.
Now I start feeling that this may be a weak really and may need to be ready to short. I am not suggesting buying or selling at this point without Market Breadth pointing me towards any clear direction.
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