Medium Term Trend: ↑UP (Changes to down below 11750)
Rangebound Trading: Nifty consolidted its position today and traded around 12120 levels for most part of the day. It did try to cross above 12150 intraday but failed and dropped below 12100 levels just before close. It closed at 12080 down 45 points.
In last 2 days Nifty has seen a rise of around 250 points (11900 to 12150) so a little bit of consolidation is expected and is healthy at these levels. Yesterday we did mention about the possibility of Nifty completing a 'complex correction' and starting a new trend on the upside. We had also mentioned that the entire move from the lows of 11600 is developing like a bearish "extracting triangle".
For bullish options to work out, Nifty should continue the uptrend and make a move above 11240-11250 levels soon and for bearish options to materialise, nifty needs to fill the gap which stand at 12000-12040 levels and goes on to break below 11900 levels ( Tuesdays low) in next couple of trading sessions itself. More time Nifty spend in consolidation above 12K levels, more it goes in favour of Bulls.
So in nutshell, Nifty remains in uptrend and we need to observe if Nifty manages to add more gains and manages to make a move above 12250 levels in coming trading sessions. If that materialise, then bulls will further reaffirms its position on the other hand if 12000-12040 levels is breached then Nifty is likely target to 11900 once again and its break could bring bearish scenario in picture once again. For now we have to believe that market is in uptrend (with a eye on 12K-12040 levels ofcourse).
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