Nifty has been quite volatile since last few expiry but during this time it has given a birth to probable inverted Head and Should pattern on weekly charts. Neckline of the pattern which is considered to be breakout line of the pattern was at 8370 two week back but confirmation is considered only if we get 2 close above the same and i am expecting that tomorrow being last day of the week we are surely getting a second close above neckline.
Since Brexit fear has subdued we have seen some volume buying next week after the event took place which surely sign that global investors are trusting our economy over other developing countries. Even the IIP numbers have supported us! A buzz around the market of GST bill passage in this monsoon session could lift the markets to my inverted H&S tgt of 9800! Though this doesnt mean we wont see any corrections on the course, as i am expecting a correction anytime to 8370 and could be even below. But my stop loss would be somewhere around right shoulder 7900. Will keep you guys updated if there is any false sign of breakout to this pattern which is also possible in some cases but only time would suggest that so risk takers should surely start buying on dips for next few weeks and hold till diwali