Tight range continues, but not for much longer
Nifty Daily – Nifty continues to remain in a tight range with lacklustre movement. But I think the directional resolution should come in the next 10 days as some of the catalysts are already beginning to emerge.
Nifty Weekly – A similar picture like the daily, interesting to note that it’s been 8 weeks in a range.
Nifty Monthly – The secular trend in the market is bullish with continuous Higher High and Higher Low formation. The last seven years up-trend line is still intact and correction up to 9000 on the Nifty will only be considered a pullback in the longer trend.
Tactically, nothing good has happened to investors when they buy after a PPO negative crossover.
The Catalyst –
Nifty AD Line: Breakdown in the AD line is the first indication of not all is good about the market. Fewer stocks are advancing and breakdown there will lead the whole market to collapse.
Bollinger Band Compression: In the last one and half year whenever the BB Width has gone below the horizontal lines, we have seen huge subsequent volatility in the coming weeks. This time also it will be no different.