On Thursday, the Nifty made an NR7 day. In our letter we suggested that Friday may see a trending move and traders should follow the intra day trend. Friday’s big rally in the Nifty has taken the Index above 5600. It has also changed the trend of TA-Insync which we track to identify the intermediate trend. Now, the Nifty has broken out of the 5400 – 5600 range, this time on the upside. On Monday, the Index was trading below the range support of 5400. The Market has given two moves out of the range, first down, then upside break on Friday.
Will this breakout be sustained? The Nifty has rallied from 5350 to 5650 in just five trading days. After such strong moves, markets are likely to consolidate. We will wait for the process of consolidation. If the Nifty moves up after the soon-to-come consolidation, then the trend certainly changes to up.
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