Nifty could well be on the cusp of sharp movement either side considering the two patterns forming and a fundamental event- Budget 2017.
Bearish Gartley would see Nifty move towards 8500-8550 range and reverse towards 8300-8200.
Another pattern forming is the Double Pattern. It will be confirmed if a breakout is seen above 8550 which would see it run towards 8900, even touching all time high.
If we look at EMA the divergence between 21,50,200 is shrinking. We could possibly see 21 crossover 50 and 50 crossover 200 confirming the double bottom.
On the other hand RSI is inching towards an overbought level.
Bearish Gartley would see Nifty move towards 8500-8550 range and reverse towards 8300-8200.
Another pattern forming is the Double Pattern. It will be confirmed if a breakout is seen above 8550 which would see it run towards 8900, even touching all time high.
If we look at EMA the divergence between 21,50,200 is shrinking. We could possibly see 21 crossover 50 and 50 crossover 200 confirming the double bottom.
On the other hand RSI is inching towards an overbought level.
A breakout above 8575 would see NIFTY touch 8900 levels otherwise expect 8100.