Nifty Bullish with medium term correction on the cards

Nifty managed to close above the 8635 level and is looking to test 8700 level tomorrow on the up side. On the downside if falls below 8635 level then may test 8586. If it closes below 8586 then we expect it to correct to 8500 level.
Maximum downside looks at 8377.

Another bull run expected if it closes above 8750 for a quick run up to 9000. But if it consolidates holding these levels then we will have to be patient.

US data shows a mixed picture, with no near term rate increase on cards and a lower than expected GDP numbers (1.2% vs @ 2.3) . Data from Japan also suggest no liquidity issues so this liquidity driven bull ran may run a long leg.

Comment:

The expected range (8700-8586) was covered yesterday with close above another important level of 8635. S&P has been range bound for a longest time now and Nifty is waiting for the big brother to follow. Yesterday's high low close are the levels to look out for. Close above/below these would confirm future trend.
Liquidity is sustaining the markets at these levels while not so positive earnings is making look the market overbought and ripe for a correction. Any sign of liquidity slump is going to trigger the fall and any positive fundamental is going to show us new high.

Going to be an interesting month. Hold tight..