Updating the monthly chart scenario discussed yesterday. The range from 4538 to 5300 is a congestion zone and the Nifty has to clear this range for further direction. Maintaining above 4800 will be bullish and below that bearish. For this month breaking above 5078 will be positive.
Daily Line Chart
The daily chart scenario is best visible on line charts which I have been discussing since some time. I am not elaborating on it since the depiction is clear and my words cannot add more to it. The OBV gives a bullish indication since it has not yet broken the uptrendline from March lows, wherea the Nifty has long done so.
Sensex shows the bullish move of today more vividly with the gap closed and a big bullish candle confirming the hammer like pattern of Friday.
However the levels of 5138-5182 needs to be scaled for one to be outright bullish. Meanwhile be cautiously long with hedges/ stop losses.
Happy Trading !!