Medium Term Trend: ↑ UP (Changes to down below 11400)
Range-Bound Movement : Nifty opend around 11930 but quickly dropped below 11900 once again. It moved up above 11900 and traded around 11920-30 for most part of the day before making a last minute dash towards 11950. It finally closed at 11940 levels, up 55 points.
In our last update we had mentioned: -
"keep an eye on 11950-11975 levels , a strong move above these levels could indicate that sideways trend is probably over for now and markets could move higher from here. However on the downside if Nifty start trading below 11875-11850 levels then probably it would mean the correction might stretch for some more time on the downside."
Nifty yesterday did drop to 11870 levels but didnt break it inspite of trading for most part of the day around this level and today it once again took support near 11970 and went on to touch 11960 which is the upper end of this trading range. So far Nifty has not broken the range but since it held on to 11870 and closed near the top end of the range, there is a chance that it could be broken on the upside.In case that happens and Nifty goes on to break (and sustain) 11970 levels, there is a chance that market start moving up and touches higher level. On the other hand if Nifty again drops below 11900 and goes on to break 11870-50 levels then theres a strong probability of current correction extending a bit more ( price wise and time wise) from here.
So for now we remain range bound but if markets manage to break above 11970-75 levels then we can expect another sharp upmove on the other hand a breakbelow 11850 can drag market a little bit more However trend remains up as long as 11400 holds.
Happy Trading!
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