NIFTY: BIGBANG BREAK ON CARDS?

Nifty has been trying to cross over 2007-2008 Highs since last six years and it looks like it will finally happen in 2014.

A major Breakout on Nifty waiting to happen

  

 

As you can see in the chart above: Nifty on weekly chart has stalled below 6350-6400 for now about six years but with Global markets supportive and market optimistic about 2014: a major breakout appears likely on Nifty. If the breakout happens and Nifty sustains it for few weeks: rest assured – next 5 years will be golden years for Indian stock market.
In market, nothing is guaranteed. But if we go by past instance, when markets break out above major and significant resistances built over many years – the bullish energy that follows can be pretty explosive. S&P500 is one such example. Let us look at the breakout there

S&P500 Chart below:

S&P500 broke out above 1530-1560 – a 12 year resistance. Post Breakout, S&P500 did pullback to 1560 before taking off and rallying to 1800. That’s what Breakout does. Once it picks up momentum, it runs like crazy.
So, lets wait and watch for the breakout on Nifty.