Nifty

Nifty has entered Vacuum Cleaner

Since last few days, there was nothing to write about on Nifty as we were witnessing a Mary-go-round for traders around 200 day average which was flying around 7792-7810 but today finally i have spotted something on daily charts. Nifty opened flat today but closed way above 0 mark leaving a Green candle but the candle has resisted to line (upper red line) connecting recent higher highs which makes it a bearish point. But we cant surely be going short yet on nifty because on downside we have got  a support line (marked red too) which was a resistance line of channel which was intact since the life high last year.  Indicators are flat on Daily as well as Weekly chart frame and so we cant get any clear way for either bears or bulls out of their position. Coming to candlesticks, there too we are not having any clear pattern for the clue ahead. So what i understand now is that we have entered a “Vacuumed Area” between the two trend lines. Why i termed it as a Vacuumed area? because those traders or analysts who would be following trend line below at 7670 would create a demand zone around the same level and on other side who would be following trend line above at 7772 would create supply zone around that and third category guys like me who would follow both would try to Sell at above trend line and Buy at below trend line. So lets c who wins the battle and Can Nifty get out of this Vacuum Cleaner soon ?  Until Nifty closes out side this Vacuum zone we wont take any call on index.

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