Nifty consistently made newer highs last week as it crossed 7800, and belied all hopes of a correction after a marathon run in the past few months. Post consolidation in a sideways range Nifty reached oversold levels on the weekly charts, thus giving rise to fresh breakout over 7800.
With the supreme court ruling on coal block allocation, the strong uptrend has been interrupted as the the market enters a phase of uncertainty over the fate of coal block allocations. Next week will be crucial as the market reacts to the GDP numbers and supreme court decision on coal blocks.
With the hourly trend oscillator crossing the daily oscillator, a trend change was forewarned by the TTO at 7900 levels, but for the up move by the extreme short term (15 minute) oscillator which propelled the Nifty to 7960. Nifty remain in a short term SELL mode and a breach of 7888 will confirm the downtrend which may take Nifty to 7800 levels and is likely to consolidate in this range. Any positive news, however may take Nifty to 8400 which may lead to some serious profit booking.
