Daily ChartNifty closed above the uptrendline from october lows once again and eluded bearish hopes of breaking down from the equilateral triangle being formed since october 2008 lows. Todays action was in one word, frustrating. It was very sideways in a small range and in technical terms an 'inside day' ---- occurs when the entire daily price range for a given security falls within the price range of the previous day.An inside day often signals indecision because neither the bulls nor the bears are able to send the price beyond the range of the previous day.
To get back to our arguments for a bearish case, even the 23.6% retracement level has not been scaled implying no buying interest. In my opinion, since the last leg up could not even touch the upper end of the triangle, bearish moves are more probable than bullish.
The supports and resistances for tomorrow are shown on the chart and remain more or less the same . Since expiry is just 4 trading days away volatility could be high and following trend indicators could cause whipsaws. For the time being better to follow the oscillator movements.
Happy trading!!
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