Nifty50 is showing signs of exhaustionFuel seems to be drying out of the Corona recovery rally. Every consecutive jump is smaller than the previous, and the most recent jumps are in 5% range. It is likely that the Nifty50 will plateau at 11300, and fall from there to 10600 (or lower), as marked.
Possibility of a big correction remains until the index decisively breaks out of the narrowing channel that ends on 19th October. That period also happens to be closer to US elections, where if Trump starts losing; then American markets would stop holding up.
Action: Short sell below 11150, target: 10600. Potential gains: 5%. Stop loss: 11300
Technically, the triangle should have a flat top or bottom or be symmetric; however, I have applied the same concept to show the support/resistance basically. It will be interesting to see whether bears win or bulls, in this narrow range. There may be a false breakout on the resistance line, before the hell breaks loose.
