Medium Term Trend: ☝ UP (Changes to down below 15400)
Nifty @ 15700 - Sideways trade continues (Support at 15650 resistance at 15900)
The game of sideways trade continues and market continues to frustrate traders. Market is stuck in a very small range and traders are getting restless now. However traders should understand that sideways trades are as much part of the market as upswings and downswings are and its totally fine and normal and infact healthy for markets to trade sideways.
Also, market cannot and will not remain in such a limbo forever and sooner or later it will break out ( or break down). Instead of wasting ones capital and energy on such sideways/nothing trade, one should rather sit out and wait for right time to enter. But most traders lose lot of capital in these sideways trade (usually option buyers) and the when the actual breakout happens, they have very little capital and energy left to make a fresh trade.
Now like 15900, this level of 15650 has been tested too many times and its likely that market breaks it and drop down further towards 15500 levels in next couple of trading sessions. When markets stuck in tight range its not unusual to see a false break out first. Now I am not saying that market is going to give a false breakdown below 15650 but its possible. Incase market goes down below 15650 then one needs to observe if its sustaining below it. Below 15650 next support is at 15500-550 levels and only when market start trading below 15500 can we conclude that actual breakdown has taken place otherwise it could just be a bear trap.
From a bullish standpoint, that will be an ideal scenario. Market goes down below 15650, traps bears and then make a sharp move back towards 15800-15900 (just one of many scenarios which can play out). Will have to see how market plays in next few trading session. A break below 15500 in next 1-2 trading sessions could inflict a bigger damage on the charts but till that happens, I continue to believe that markets are likely to head higher eventually (whenever this correction gets over).
Happy Trading!
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