Nifty continued to drift sideways as predicted, since the last 12 days in a consolidation pattern and broke through the support at 7480 to go below 7450 on intraday basis. However, with a quick rebound it managed to close above 7480 giving a hope that level will be protected on closing basis.
Nifty has earlier broken through the H&S formation on hourly chart at 7550 which gives it a downside target of 7300 in the next few days till expiry, unless the pattern is negated by a close above 7550.
In an alternative scenario, Nifty may continue to drift in a sideways channel and rebound to touch 7600 once again (the blue channel). In this case, there is a possibility of Nifty touching the extended H&S neckline at 7600 and fall thereafter to touch the H&S target of 7300.
