Nifty has traded in a broad range between 9686-9940 over the last few weeks. We still maintain our bullish bias over the long term, though there is a possibility that this range bound movement is actually forming a triangle pattern. If this is indeed true then we are likely to see another sharp leg down over the next month. The key 9940 level should be able to determine the outcome.
Hence it will be prudent to take some hedging activity with a stop above 9940 for the short term. Chart Below:
The break of key 9940 level could be the first signal for upcoming new highs in Nifty.