Today Nifty took support from bottom line of the channel running since February 2016. Likely to test the bottom at 10240 again in this week. If the channel is not broken then the index will stay within the channel till December. December onwards, the performance will be driven by the political scenario - state elections and then the union elections.
Closing above 10200 is crucial for staying in the channel.
Pullback has been as expected. Next resistance at 10850-11050 range. Crossing that will open a return opportunity of about 10% within 2 months. In case the message wasn't clear in posts above, its time to buy Nifty!
The resistance from fall from 11760 appears to be strong and noteworthy. Watch for it in the range of 10500-10650 in next 10 days. Also watch if it is able to conquer the 30 month old channel at 10270-10300.
Trade closed manually:
Political developments to determine whether the channel holds or not.
Trade closed: target reached:
December 20 Close was on account of target (10850) achieved.