After eight days of consolidation, the benchmark index Nifty50 broke the conjunction zone on the higher side and witnessed a bullish breakout on March 30. Indian bourses witnessed a gap-up opening for two consecutive days and most importantly it sustained and closed near its day's high which indicates a structural long building scenario.
The prices finally closed above their small and medium-term averages and these averages will act as an important support for the Nifty. The breakout we witnessed on March 30 can be considered as a Bullish Pole Flag pattern breakout. The Bullish Pole Flag is a continuation pattern and normally resumes its pre-consolidation trend.
The momentum oscillator RSI (relative strength index - 14) which turned flat in the last few days suddenly hooked up and closed at 60 levels with bullish crossover on the daily interval.
India VIX drifted below 21.50 levels and closed three percent lower on March 30. India VIX closed in the red for the five consecutive day and lost 25 percent, this structure indicates gradual decreases in the volatility.