Observation: After showing a sharp upmove in last session, Nifty took a breather today and closed the day lower by around 16 points amidst choppy trend.
Nifty opened today with flat note and later shifted into intraday choppy trend with weak bias. The intraday weakness has not gathered enough strength and Nifty closed the day with slight weak bias.
A small negative candle has been formed today (within a high low range of around 10,453-10,412 levels, 41 points), which is indicating sideways range movement in the market.
The opening upside gap of last session is still open and if it remains unfilled for the next 2-3 sessions, then that gap could be considered as a bullish runaway gap and that could suggests further upmove for the market ahead.
The market is currently showing action of sharp upmoves followed by sideways range movements. Having moved up sharply yesterday and a sideways range of today is now hinting at the possibility of similar choppy trend for the next couple of sessions, before showing another round of upmove.
Conclusion & Strategy:
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The short term trend of Nifty is sideways and this narrow range movement is likely to continue for next session. The near term trend of Nifty is positive and short term weakness or choppy trend is expected to result in upside bounce again.