Nifty has been in strong uptrend for now a year but real momentum started in March, when it broke out above 6400. The positive election results helped Nifty scale new highs and here's how it look as of today.
Nifty Daily Chart
Nifty has stayed strong and every minor pullback to 50 dma has resulted in sharp upmove. Nifty as of today stands at new life time high near 7900. There is no sign of weakness as of now and it looks like dip buyers are buying every small dip in the market.
How should we read the action of last 3 days?
Normal consolidation before resumption of uptrend. But Having said that - We cannot rule out correction if Nifty sharply declines in one of these days. Anyways, for good long term health of the market - it would be better if Nifty consolidates its gains for some weeks around current levels. Well, we will see what happens next
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers