Nifty openedgap up of more than 250 points on Monday soon after government’s decision toslash effective corporate tax was announced on last Friday. Nifty rallied closeto 1000 points in 2 trading sessions. This is a feat which has never happenedin the history of the Indian Stock Market.
After aeuphoric move, Nifty entered in a consolidation in the next four tradingsessions. Presently it’s trading in a Symmetrical triangle pattern and breakeither side may lead to fresh momentum.
Probablesupport in the short term comes at 11450-11500 and probable resistance comes at11600.
Technical parameters look strong as of now and sustainable move above 11600 may lead to further strength in the short term.
In the dailychart, Nifty breaks out from two months of consolidation with a breakaway gapsuggesting underlying strength in the index.
PresentlyNifty is trading in a Flag pattern and likely to consolidate for few daysbefore fresh breakout. Probable resistance on the upside comes at 11650-11700and probable support comes at 11400.
Most of thetechnical indicators including Stochastic, CCI are trading in a overboughtregion while RSI is trading close to the overbought area suggesting strengthfrom technical parameters.
In the weeklychart, Nifty has formed a spinning top candle and placed right between crucialresistance of 11700-11750 and crucial support of 11350-11450. Break either sideof the range may pave fresh direction of index on a broader basis. Technicalparameters have started to turn bullish in the weekly chart.