Nifty - Upside Capped 6300 - 6357 Zone

Nifty (CMP: 6176.1) - The above chart shows the bullish outlook for the short to medium term perspective.

The index has bounced from the cluster support of 5970 levels.  Price has formed sort of double bottom at the level of 5970 levels.  The level is confluence with 21 WEMA and median level of pitchfork (Blue line).

Price is forming higher top higher bottom set-up on weekly charts which is a sign of bullish stance.  In the perspective of Elliott wave theory “Flat Pattern” (a-b-c) is progressing. “Wave a” has ended at 5970 level and now we are in “wave b” which is sub-divided into three wave structure. “Wave b” could completed at around 6260 – 6300 – 6357 levels. After completion of “wave b”, then “wave c” will open for the downside target of 5970 – 5850 levels.

From the recent price developments and formations indicates that the index is heading towards lifetime highs of 6357 levels. Before breaking the life time high, we may see a correction. There is very less chances to break the life time high. So, Traders can use the rise as a book profit opportunity & wait for fresh momentum. The weekly oscillators are placed in positive mode.

Conclusion: The trend remains up & heading towards 6260 – 6300 levels. Long traders can book profit at 6260 – 6300 – 6357 levels or revise stop loss to 6120 level & hold. Traders can initiate short positions at higher levels.