NIFTY had one of its tightest ranges today of just 30 points which was last seen close to 3 months back. Such tight moves set the platform ready for a good take off, with a false move on the breakout side and then into a good trend. NIFTY settles into the value zone after clearing long trade exit. While the market is bullish at present, a strong bearishness likely after a new high is breached. The next move up will be the last breadth of the bulls in the daily charts. There can be some prolonged sideways market or a sell off.
Result season should set the ball rolling on the bullish side to complete the divergence most needed. No trades at present on the daily charts, NIFTY needs to close above 5260 to go bullish.
Hourly charts went in and out of short exit, but kept the shorts going till the end of session. The averages have closed into a tight weave. A close between 5255-5262 will give cover short signal and a close above 5262 will give long trade signal. Now the direction of the market at least for the next sessions move to the mercy of the US markets.
A burst off is likely on the hourly charts too very soon.
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