Nifty has done three things since middle of July 2016:
1. It made an attempt to climb to 9000 - Previous High
2. It's trying to build a base at 8550 - Launchpad to rally more
3. It's resting and giving time for moving averages and earnings to catch up before it makes another big move. See how 100 dma has inched up over last 3 months
Charts speak for itself. Here's the Nifty daily chart
The market needs Leadership for sustained rally. It's during this resting period - leadership emerges as churn takes place and new players take on the leadership role.
What does this all mean?
Nifty would be a great buy around 8450-8550 band and sooner or later...Nifty ideally should breakout to NEW High. In markets nothing is certain. All one can do is HOPE that trend will continue and hence trust the bulls till they stop rewarding you.
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