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Nifty Trading – Focus rests on Decision point at 9000.00

Nifty trading below the Decision point at 9000.00

Round numbers are sometime significant for traders, since markets have large tendency to play around them especially oscillating back and forth before taking a clear direction. Nifty trading in such a scenario, Price action is slightly below the Round number 9000.00 – there’s a large tendency on prices to test it. Nifty already offered ample opportunities within the trending structure; I highlighted most of them through my regular articles on Nifty trading. Recent Trend is attributed to Global Portfolios rebalancing the assets based on MSCI Index. Just for the sake of Information MSCI added a couple of Indian Banks and corporation in MSCI Emerging market index also increased the weightage of other few Indian companies.

Nifty trading in Uptrend will be tested by Decision point

Nifty traded in Uptrend from the beginning of March

Highlighting the trend structure on higher time frame, we see that Nifty trading through price channel formation. Nifty started trending from March, beginning at price value 6800.00. The uptrend will collide with round number decision point resistance zone 9000.00 for the coming days. Volatility might increase slightly if price action tests the psychological level. In order to resume the trend, market should break the level clearly and Nifty trading above that is necessary. It might prove the strength of Buyers. On the other hand, position covering might push the structure into corrective phase driving prices lower. Upcoming Price action will be interesting to uncover the market direction.

I am expecting the Prices to consolidate unless and until we see strong impulsive movements in either direction. Any fundamental factors will be catalyst

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