NIFTY Gap-Up Today

S&P CNX NIFTY Daily Stock Chart Technical Analysis:

NIFTY created a gap-up today.

The index opened at 6092.3, a gap-up of a whopping 74.6 points!  The trend triangle that was discussed in Friday's post was completely ignored by the NIFTY today.  It jumped above both trend lines and closed at 6117.55.

Market Outlook:  Today's market jump might not remain sustainable unless the index rises tomorrow as well and the trading volume increases.  Don't go bonkers and jump into the market thinking this is a bullish trend, there is no confirmation yet.

Technical Indicators: 

• The index has taken support of the Fibonacci 78.6% after twice taking support from the 61.8% level.
  
• The only point of concern today is that the total volume traded was not only lower than the past 4 days when NIFTY was in a free wheelie downfall, but also lower than the past entire two months of Sep and Oct '10.  This is significant to note because though the market jumped up like a gymnast on a mat, it traded much lower than the average.