Nifty Stands Still Inside 8210-8310; Contraction In Market For Past Few Days Is Likely To End Soon; Nifty Trend Remains Up; Bank Nifty Is At The Verge Of A Breakout; Maintain Long Positions With Tight Stop Loss

Daily morning outlook

NIFTY: So far, the Nifty resistance found at 8300 is holding well. For past three days, the Nifty has been in a narrow trading range (8210-8310). This is normal after big moves (up or down). We had big moves past week or two which helped prices bounced back from its support of 7900. On the daily charts, the index traded in a range of just 35 points which made another NR 7 (3rd in last five trading days). The NR7 tells us that the Nifty has gone into deep contraction in its range, today. The next move in this cycle should be an expansion, which means we can expect a big move soon. Direction of a move is not certain as our view is more or less sideways in the Nifty. Hence, traders who have long positions should protect them with tight stop loss. New trading opportunity may only come above 8310 or below 8210. As far as prices are trading inside narrow range; traders are advised to stay away and watch the market price action from outside.

Stock Market analysis

BANK NIFTY: Three consecutive NR7 patterns in Bank Nifty, this is something unusual; may be a big move on the cards. Today prices opened with a gap up of 55 points at 18314. Prices traded in the low range of just 120 points. In the end, Bank Nifty closed with minor gain of nearly 20 points at 18277.60. On the daily charts, prices are inside a trading range (17800-18300) from past couple of weeks. We need a close above 18300 for the confirmation of a breakout. Traders should be long in the index from 18250 as we had suggested a long trade above 18250 in the anticipation of a trading range breakout. Now index is trading narrow near its resistance area; hence we may see a big move soon on either side. Therefore, traders should protect your trade with a tight stop loss of 18200 because we do not want to lose much capital in an uncertain environment. Place a target for this trade at 18650.

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