After three‐months of sideways move in the month of March Nifty witnessed a massive move of 850 points (7.8%) and closed near the all time highs (11760) at 11623. The rally was supported by heavyweights like Reliance, ICICI bank , SBI, HDFC twins and other Financial and Banking stocks. Since the beginning of April month, Nifty has found some resistance around previous highs and moved sideways in small range of 200 points between 11750 and 11550. This week finally it made a new all time high of 11856 and gave a highest ever weekly close of 11752.
The short‐term trend for Nifty is still bullish, however its is currently placed near the supply line of the ,“Up Sloping Trend Channels” (Red and Blue), which is in force since Nifty touched a low of 10004 in Oct’18, as shown in the above chart. There are multiple resistances working in the range of 10800 and 10950 (shown in charts as extension levels of current move from the lows of 10585). The daily RSI is also showing negative divergence on charts. This suggest that in coming days, Nifty might trade with positive bias amid high volatility. Until, Nifty breaks 1950 level, It will remain largely range bound between 11700 and 11950.
A decisive break of 11950 will see the bulls once again taking control and then Nifty could rally towards 12100+ levels in current series itself. On the downside, Important support for Nifty is 11700 while 11550 is crucial support for current uptrend to remain intact.