In our last update on Nifty we pointed out how Nifty has been trading in between two trend lines. We also mentioned a crucial support around 8540 levels. Chart Below:
Nifty has since tested the lower trendline T2 and managed to close above it. It has also take support just above the crucial 8540 level. The price action suggests we may again move towards the T1 trend line. We believe the 8623 level is a crucial level, a break of which should see a move towards 8750 and possible 8800 levels.
8689 is a crucial level and if Nifty wants to hover some more before moving towards these target it may develop a brief counter move from below here. But the probability of further consolidation before attempting the move is low. On the downside break of 8518 should invalidate this outlook.
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