Nifty, Sensex set for 10% rally? Tech charts suggest so

The current market scenario indicates that soon benchmark indices Nifty50 and BSE Sensex will witness crossover of three moving averages (in a closer distance) - 50-day moving average (DMA), 100-DMA and 200-DMA on the daily chart. The same scenario has been witnessed four times in the entire history of both the indices. The said convergence indicates a strong rally of around 10 per cent as per the table mentioned below.

Nifty 50
Approximate date	Closing level	High	Date	% change
14-Aug-12	5240	6111	29-Jan-13	14.25
5-Aug-13	5542	5118	28-Aug-13	-8.28
3-Nov-13	6317	9119	4-Mar-15	30.73
21-Feb-17	8907	11760	28-Aug-18	24.26

BSE Sensex
Approximate date	Closing level	High	Date	% change
3-Aug-12	17179	20203	29-Jan-13	14.97
16-Aug-13	18598	17448	28-Aug-13	-6.59
22-Oct-13	20864	30024	4-Mar-15	30.51
22-Feb-17	28864	38989	29-Aug-18	25.97

This type of movement helps traders and investors gauge the rising / falling trend with certain clarity. The moving averages have strong relevance in trading as it helps to restrict losses, build a view on the market and stay patient to gain greater returns.

Nifty 50: The index faces stiff resistance of 100-DMA, currently located at 10,860 as per the chart. The Nifty50 has reversed thrice in last one month from the said average. However, on the other end, 50-DMA supports the reversal with buying emerging at 10,600 and leading up to 10,650 level. The 200-DMA is acting as mid-average between the other two averages. At the current level of 10,775, all the three averages - 50-DMA, 100-DMA and 200-DMA are on the verge of making positive/golden crossover signaling a strong upside rally, chart suggests. CLICK HERE TO VIEW CHART

BSE Sensex: The index has crossed the resistance of 100-DMA recently; however, it failed to hold the follow-up buying. It is currently trading around 35,940 level, a little below its 100-DMA of 36,010 but the 50-DMA acts as the support level, which is rising above 35,400 level every new session. The 200-DMA is located at 35,730, its immediate support level. Soon, these averages will converge to highlight the bullishness in the index, chart suggests.