Nifty continues to pass cycle lows by moving sideways!

Nifty Daily chart

Nifty 60 mins chart

Nifty is not doing anything but just buying time maybe to pass out cycle lows. During start of the year itself we mentioned 16th Jan as the cycle low date and Nifty is probably moving closer to this date before breaking out.

On daily chart, we have shown 2 standard deviation line. This indicator suggests how much prices are deviating from the moving average over a period of 14 days. This indicator is now very close to the support level from where it has bounced back many times. This does not indicate direction but does indicate a strong directional move is expected soon as prices should again start deviating from their mean levels.

60 minutes chart is showing Nifty’s sideways action at its best. Nifty has been testing patience for directional players and is moving in a trendless fashion. We continue to maintain our stand that a close above 4800 will give a strong positive breakout & we can move towards 5100 levels but a move below 4685 will indicate further weakness ahead till 4600 levels.