Short term Positivism will return to market

Indian Stock Markets seems to be back on track for short term. With today's bounce I believe that market will trade positively for next few weeks.

Technical Analysis

1. The bottom trend line drawn in daily charts shows a support around 5550. Nifty has respected the support.
2. Bollinger Bands confirms the formation of secondary candle from its bottom line.
3. CCI at -109 confirms the market is oversold.
4. MACD has crossed the EMA at -10 level. that confirms the trend reversal.

Fundamental Analysis.

1. The Fear of no confidence motion seems to be fading slowly as there is no consensus among opposition.
2. The fall in crude prices could push IIP up in next few months.
3. The European crisis has not ended. Traders should be cautious about that.

My Verdict: One can trade in nifty long with a strict stop loss at 5530 for a target of  5800 in next few weeks.