Medium Term Trend: 👇Down (Changes to up above 15150)
Nifty @ 15100 UP 142 points : Range bound trade
Nifty has been rangebound since last few days and movement is broadly ranging in 14900-15100 zone. Even though the range is small, the swings that we are witnessing are relatively big ones as almost every day Nifty is testing both high and low point of this range in the same trading session.
In the last update we had discussed that 14800-850 on the lower side and 15150 on the upside are key levels to watch out. Now we have not managed to break this range but given the fact that Nifty has closed at 15100 we can hope for breakout if tomorrow Nifty manages to open and sustains above todays high. If not and Nifty once again drops below 15050 levels tomorrow then probably the current consolidation will continue for some more time.
What we are seeing is definitely 'consolidation' and not a 'correction'. Its been 15 days since Nifty hit a high of 15450 levels and now after 2 weeks we trading just 300-400 point lower from all time hig hence it can be said with reasonably surity that whenever this consolidation gets over (tomorrow or next week) we will see a sizeable upmove above 15400 levels (possibly towards 16K+ levels).
Many technical indicators like MACD etc are in bearish zone on daily charts however we are not seeing any major weakness on the price charts yet, so even if market fall from here its likely to find support at 14700-800 levels. Overall the pattern from 15450 levels ( last 15 trading sessions) is probably developing like an extracting triangle however it can be confirmed only when we see close above 15150 and then a move above 15450 (to new high). Will discuss about this more once we have a confirmation in place.
In Summary, nothing much to update for now, we continue to trade in range and even though the overall trend is down there is a possibility that Nifty see a breakout on the upside. And like we mentioned last time, trend will change to UP once we have a close above 15150 (15200 preferably).These downmoves we are seeing has no impulse at all which could encourage bulls to push Nifty higher from here. For bears to gain strength, they must break below 14850 pretty soon.
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