Nifty breaks out, set to soar higher

FRIDAY THE 13TH turned out to be an eventful day for the Nifty. It initially plunged 368 points during late morning trade but rebounded strongly to close with a gain of 220 points, or 0.89%.

- V K SHARMA

The index experienced a wide intraday range of 611 points.

Though the Nifty closed with a gain of just 0.37% for the week, Friday's large candle not only completely engulfed the week's trading but also a major part of the fortnight, which lends credence to the up move seen Friday.

Another notable action, of which we had spoken in the last article, was that the neckline of the Inverse Head & Shoulders was indeed crossed last fortnight, and the Nifty took support on the neckline twice. The first support was taken on December 5, on the day when the trading range was 563 points. The second occasion was last Friday when the Nifty just bounced back from the neckline.