Update : 2.45 PM - A SELL was generated on hourly chart @8141.
Nifty earlier broke out of the 7500-7800 range after a long consolidation and crossed 8000 convincingly. The consolidation was truncated from 15 weeks to 10 with the spate of encouraging news flow on the economic front. Such was the strength exhibited by the indices that a normal correction was overruled as Nifty reversed from 8660 levels and gained strength with every rise.
Final thrust has begun with the initial target of 8200 and 8400 thereafter. The level of 8400 can be crucial from the Elliott Wave standpoint, as the market may encounter significant resistance and a possibility of long awaited correction. The clarity on corrective levels may emerge as the market unfolds its moves in the next few days. The weekly charts continue to show tremendous strength and any correction, if happens will have to be a forced correction in the absence of any adverse news flows.
See our earlier post :How Nifty Consolidation has Played Out
