A breakout above 4900 was the highlight of today’s price action. This qualifies as a breakout from the crude trading range setup between 4700 and 4900. So far, price action has been bullish. A minor setback for bulls came in when the Nifty failed to hold the highs established in the morning, and, closed near the lows.
The Market has two courses of action. First, it can confirm the breakout by moving above 5000. This should give a target of 5150. Second, it can disown the breakout by moving below 4900, effectively returning back into the 4700 – 4900 range.
Therefore, the next few days could show bring about some kind of decision – trend or range.