Nifty in bear grip

Nifty gives a directional breakout on a lower timeframe after days of consolidation. The lower time frame was witnessing a symmetrical triangle formation with highs getting lower and lows pushing higher on the last few days of price action.

Nifty finally managed to breach the upward sloping resistance trendline and close above it. Though on a daily timeframe we need confirmation tomorrow with a follow-up buying.

There was some strength seen in prices with most of the components as well participating in this upward move but a thrust of a larger change in breadth would confirm the strength of this bullish move.

With this, we are still in the bear's grip and we do not know if this current move can be attributed to a larger bullish move that can change the scenario. For now, stock specific approach will remain with sectors/stocks that are leading like Auto, Energy, and PSE.

(The author is Technical Analyst at Finversify and is a CMT, CFTe)