Nifty Consolidation Could Start - Rakesh Chandra

I had asked to wait for 2 more days to let the momentum cool off. So the next two days a red closing has happened on cue. Now what? Has the momentum has cooled off completley (trading below 4550 only) or is there still some upside left (above 4600)?

The car can go off some more distance even if the engine stops unless brakes are applied. Newton second law of motion states that a body tries to main its current state unless an external force acts on it. Here the external force is chaos i.e. new information.

Below 4450, further downside would be on cards. On an EOD basis Nifty is forming an extracting triangle. The expanding triangle is said to be a good indicator of a reversal pattern, and is usually analyzed when a price has been increasing to see if a decrease is likely to occur - also called broadening top and broadening formation.

With stoploss 4,553 buy above 4,599.08 next week with up target >4,673 >>4,793.
With stoploss 4,599 short below 4,553.42 next week with lower target >4,480 >>4,360 >>>4,286.

Option player can sell 4800 call option on rise and collect the premium.