Medium Term Trend: ↑(Up)
Market update: Nifty opened slightly in +ve territory and traded in a narrow band between 11650-700 before closing at 11690 levels, up 50 points.
We had mentioned on Friday that since Nifty failed to break below 11550 decisively, chances are it may make another move on the upside and it will be confirmed on break above 11700-11720 levels. Even though Nifty failed to cross above 11700 levels it gave a another positive close and another higher top higher low candle was posted on daily charts which is definitely a sign of strength for now.
Nifty has been moving in a downward sloping channel for last 7-8 days and the upper trendline/resistance line (which was keeping Nifty down) was broken on hourly charts on Friday. Today the same was broken on the daily chart as well. So just to reiterate, unless Nifty is making some kind of failure or truncated pattern , chances are it may make another dash towards new time high and may be cross it as well (how far it will go or whether it will sustain there or not is something we need to analyse later).
Overall for now, our view remains same. Nifty's current move is overstretched which may reverse suddenly and without warning but as long as the trend remains up and Nifty is trading in the bullish zone , there are chances that this move will continue for now on the upside.
Happy Trading!
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