Nifty has been locked in a tug of war for quite a while now !
On one side you have the FII’s selling relentlessly for the past 2 weeks, mind you, they have been selling sizeable quantities to. And on the other side you have the world markets rallying away to glory. If you notice, few blogs back I had mentioned exactly this where, a decoupling effect between the global markets and our markets were seen. This still continues with every gap up of ours not able to sustain….
To top all this off, nobody seems to be talking about the mounting tension in the ladakh border between India and China. Its like two blind people holding each others hand and expecting the other to help them cross the road. Everybody is so engrossed with Covid, that this news seems to be falling on deaf ears ! Please note, an escalation in this tension would be the last nail in the coffin for this bear market rally that we have had from the lows of 7500 odd.
On the flipside, another point to keep a watch for : look for a day where the gap up happens and sustains….Also to rally significantly from there. That is, it significantly build on the gains through the day and does not sell off. These two are the signs that I am looking out for in terms of a trigger point for breaking this long range. Unless we see either of them happening or the global market selling off, we would continue to be in a broad based sideways range.
