The Nifty has been in a bear market for the past one year. Its weekly chart shows each successive high was lower than the previous one. This is a bear market pattern. The previous high of the Nifty was at 5200. For the past three months, the Index has been consolidating at lower levels, but has NOT crossed the 5200 high. The consolidation is givin a message: A big move may be coming in the Nifty. A close above 5200 will give a second message: the pattern of lower highs in the Nifty has been broken. And, the consolidation in the Nifty has seen a breakout on the upside.
Then, we may be in the process of (a) seeing an end of the bear market, or, (b) witnessing a sharp upward move inside the bear market. In either case, a close above 5200 tells us to be alert to buying opportunities. The bullish sense will be cancelled if the Nifty were to close below 5000.
Then, we may be in the process of (a) seeing an end of the bear market, or, (b) witnessing a sharp upward move inside the bear market. In either case, a close above 5200 tells us to be alert to buying opportunities. The bullish sense will be cancelled if the Nifty were to close below 5000.
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