The Nifty had been facing difficulty in crossing the 5475 - 5500 band for the last few weeks. Today, it broke through this level with good momentum backing it up. A major hurdle seems to have been overcome. The move remains in line with our view of the past few months that the trend is essentially positive and is likely to attain higher values.

Technically however, the short term indicators retraced a bit and have begun rising again. This means that space has been generated for markets to rise. At present the indicators have yet to reach overbought levels and the Nifty remains open for further advances. Weekly charts continue to possess sustainable strength. The index remains above important medium term levels which currently stand at 5410. From a medium term perspective the uptrend remains undamaged. We continue to hold a positive view of the trend at this juncture. Resistance may be encountered in the 5600 - 5625 region.