Nifty consolidates within a broader range of 150 points. Needs to sustain 7700 now.
In our last post, we had suggested that "Nifty may consolidate now" and in the last couple of trading sessions, Nifty has done exactly that, albeit in a very wide range of almost 130 points in the last two days. However, on both the occasions, the Bulls have managed to close the Nifty at the higher end, indicative of Bullish undertones as of now. We took a trading holiday yesterday.
1) The Elder Ray readings : Bull Power rises from -4 to +46 Bear Power reduces from -76 to -67 indicating that both the Bulls and the Bears are in equilibrium as of now. For today, the Bulls need to overcome the levels of 7760 to maintain their upwards momentum whereas the Bears need to breach the levels of 7630 to maintain their downwards momentum.
2) The stochastics remain in the neutral zone and are pointing in opposite directions.
3) The Nifty has now closed above all its key EMAs and also above all its key DMAs.