Disclaimer: These are my personal musings and only meant for entertainment, not as trading advise. To view the full chart, right click on the thumbnail and open in a new window.
The Nifty traded sideways with a negative bias. Is it not to be expected, with a huge 200 points rise in just four trading sessions?
The roadblock ahead still holds.
Looking at the weekly chart, we see a side-by-side bearish and bullish candle. Normally this is considered to be an extremely bullish pattern. Further, I looked at the Heikin Ashi method of plotting the weekly Nifty, and the candle is a small bodied candle, with large shadows, which normally signals a change in trend.
On a weekly chart, the trend was down, and possibly, the trend may change to up. We also see a pick up in the total traded volumes on both the exchanges. This leads me to assume that, barring unforeseen circumstances, the trend is going to continue upwards.
Maybe this time, the Nifty will break out from the trading range roadblock?
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