Rally has Hit a Speed Breaker ?
Nifty futures traded mostly sideways yesterday, though the contract opened, traded and ended up in the positive territory. And Monday's high remained lower than the previous day's high of 5702 at 5690. The low also remained higher than Friday's low. Volumes were also very low This has lead to the formation of a low volume inside day candle in the daily chart of the Nifty contracts and the major indices. An inside day candle after a strong rally can indicate a pause to even a reversal at some times. But a scenario of some more of sideways trading and another test the resistances is also a plausible right now. Today's trading so far is also pointing towards this scenario of sideways movements. Please see the previous two posts for a detailed discussion on the technical position as well as a discussion on supports and resistances.
Nifty Futures - Daily Chart
