Nifty Daily: After the last week’s sharp pullback from the lower end of the range, Nifty has spent the last two days moving sideways. There are two factors as discussed below which are indicating a breakout higher from this range.
Trend Strength: As reflected by ADX(7), the short term trend momentum has moved up sharply in the last 4 days with the pullback and is above/near the 25 zone beyond which price should pick up momentum. The upside from here will take out the resistance @ 11000 and this will induce a lot of fence sitters to jump in the long side.
VIX: The fear index has given a negative crossover signifying a buildup in bullish sentiment with the rise in prices. As described earlier, the crossover is a signal that the price may not stall at the upper resistance this time and we will have a bullish breakout.
In a nutshell, the possibility of Nifty moving higher is more than it again stalling at the 11000 resistance.