Nifty Entering Sideways Phase, Range of 4200-4650

Friday was a reasonable day for the Nifty with it gaining about a percent from the closing price of Thursday. The American markets and the European markets were much better too on Friday than the day before. There happens to be good news on the crude front too. After reaching highs of $121.50 and thereabouts on the previous day, crude slipped to $114.75 on Friday. Looking at the global cues, it does seem like Monday is going to good for the Indian markets too. However, there were some negatives too. Not all seems to be going hunky dory for India as far as the nuclear deal is concerned. The NSG has agreed to meet on Sep 4, 2008, and in the meantime, will suggest changes to the India specific clauses of the agreement. Inflation increased still further to 12.63% for the week ended Aug 9, 2008.

Seen above is the daily chart of Nifty. As can be seen, the last four candles have been alternating between blue and red. Simply speaking, one day has been ending in the red while the next has been closing in the green. This alternation clearly shows that the market is now becoming uncertain about its next move and is now probably entering a sideways phase with the range as shown i.e. between 4200 and 4650. Since the markets are in a range, nothing much can be said as of now till this range is broken either on the upside or on the downside.

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