Future Stars of Nifty

Nifty has entered consolidation zone with a range of 7200-7500. Heavy profit booking was seen at 7500 on past two occasions and the level will offer stiff resistance. The downside however should be limited as correction in a bull market is normally a sideways consolidation.

Nifty heavyweights Reliance and ONGC have encouraging charts as the trends  make a bullish alignment pattern  on the daily charts with the long term trends showing strong bullish strength. The current sideways move in both the stocks is a brief pause before they start their upward journey and propel Nifty to higher levels.