Nifty - Test of Strength

Benchmark Nifty50 rallies sharp for 2 successive weeks scaling back to levels of 11,9000 and more. It has been a “turn-on-a-dime” kind of bounce back from the index, well supported by sectors like IT and now Banks. The underlying trend is definitely UP as the index continues to show resilience to correct, but it’s the level above that offer some serious resistance. A crossover beyond the psychological 12,000 and the index will be dealing with supply from multiple time frames. This will not be easy to deal with and it’ll be healthy for prices to correct and create some further head rooms. But markets do what they do, and so all that we as traders can do is prepare ourselves and act accordingly. In this video, I have taken a closer look at the index from various time frames to understand what’s the probabilistic move ahead. Strategically, one should maintain a cautiously bullish approach and should be more comfortable buying on a dip rather than chasing breakouts.