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Nifty - In a Smallest Consolidation Range Between 15650 and 15915

In the Nifty Monthly chart, we can see the last red candle try to damage the trend which was continued from March 2020 upwards. It is trying to break the trend. But as usual, we need a follow-up confirmation candle to reach a final decision.

But if you see the Nifty Daily chart, it is still resting into a channel range.

Well, A Doji candle on Friday shows that bulls and bears both are confused. It seems we are in "No trading Zone", till Nifty shows the direction. Either upwards or downwards. Option traders buyers and sellers both are not feeling comfortable in positional trades. Market in range eating premium for buyers as well as low India Vix does not support sellers to grab good premiums.

Bank Nifty is also crawling in a range and tested 35800 twice and 34860 multiple times. It needs to break 35800 with huge volumes to touch 36000 and beyond.

Broadly Nifty Bank Option data is not suggesting a big move immediately. But if it manages to cross 35800 and sustain, it will move towards 36500 within some days.

In the same run, Nifty can reach 16200 to 16300, if it manages to cross 15915 with huge volumes, till then it would be in range only and we could see profit booking on higher levels.

With the last Red Candle, breaking the Nifty monthly chart channel could become resistance instead of support now for some more days.

Market breadth internally seems weak, and internal momentum and strength is also missing during all technical pullbacks and this is really a concern

Avoid any aggressive trades on either side, till Nifty does not break the range. The present range is a consolidation range, which can break either direction, so keep your positions hedge.

Thanks for reading.

Happy Trading

Keep Investing


Neeraj Bhatia

Managing Director

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