Nifty - is it a Correction or Trend Reversal?
As indicated earlier week, Nifty moved in a described range.
On daily chart, it took support exactly from where it made a huge Gap-Up.
Now for coming week, we should understand some technical points. Indicators are showing as below mentioned levels
In short term, Nifty seems to move in a broad range of 14200 to 14750 for next week. Below 14000, it can move down up to 13500 and above 14800, it can touch 15150 again.
We will suggest to sell of rise till Nifty is move up to 14800 at least for this week, but above that one can buy for a small range up to 15150 only. Below 14000 it can crack up to 13500 and 13200.
If you will find Nifty at lower levels, make a strategy for buy on dips for quality stocks.
For next week, we can say that the correction or upside both are capped and Nifty will consolidate in above mentioned broader range.
We can not see any trend reversal so far, it is only a correction, which was overdue. Moreover you can say it is a global sell-off, which was mandatory to move further upside.
In future, again we can see Nifty to cross 15500, in coming days and it would be no surprise if it can touch 16000 also.
Keep eyes on US Dollar index, which is suddenly reversed in a single day, which is indicating that market could drag lower in short term.
Stick with quality stocks and try to make your portfolio strengthen.