1-18 Market Analysis

Nifty broke out of last 4 days of range with a big volume push. I always like this kind of breakouts. Breakout with volume always shows their strength. If we see another strong bar like this in day or two, we may have good chances to go to 5300 area. Looking at this action, I see that 5060 is the next key level which is reachable. Once market reaches at that level, it will tell us its mood and where it may move from it.

Now lets look into big cap stocks: Except, LT and Reliance all other big cap stocks I am tracking had a little weak closing. I am not excited about it. I certainly believe that big cap stocks tells us the markets real mood. Banks are not doing good in general, most big banks also had bearish closing.

Looking at the Nifty's todays action and Big cap stocks movement, I believe we should see some consolidation in this area before making another move (up or down). If we see big volume tomorrow,  we may see follow through. Most important thing here is to hold this price level and don't loose today's gain to show bull's strength in this market.