Indecisiveness at the top continues to be the reoccurring theme for the index as rallies have faltered around 9,700 levels (In Thursday’s trade, Nifty made a peak of 9,699 and failed to cling on to higher levels). On the downside, support of 9,560 has been holding out since the start of the month. So far in this week’s trade, index swung like a pendulum and managed a gain of 0.4% on weekly basis.
Despite comeback of price volatility in Thursday’s trade, range expansion is highly awaited and time-wise correction could probably come to an end in next week’s trade.
Multiple gann supply points are placed between 9,700-9,730 levels which has been acting as a hurdle since 6th June. A typical trend is observed in last two week’s trade i.e. sell on rallies and buy on dips. So fresh momentum is possible only above 9,710 and on the downside a move below 9,560 would lead to a breakdown from recent consolidation.
A grinding market will always makes life difficult for index traders and best way to play this market is to focus on stock specific opportunities because index is stubborn and only a move on either side of 9,710-9,560 is going to provide a trending move.