Expect range-bound Nifty, Volatility at higher levels: Hunny Tarika, FairWealth Securities
Nifty showed increased volatility around 3430 -3450 which happens to be the 200 DMA of the market and closed below this at 3384. Increasing volatility at this level is obvious as Nifty has rallied almost 1000 points from 2540 to 3510.
A consolidation can be seen around levels of 3150-3400 before market makes new highs.
As mentioned in our previous reports Nifty is trading in an overbought zone & any correction in the near term is not ruled out. Nifty is in a intermediate uptrend until 2960 is not broken, so any correction at around 3150-3200 levels should be used as a buying opportunity by the short term traders as well as investors. The key focus should be the large caps as they will be the first one to initiate the upswing. Near term support for the market is at 3300 & then 3150.
All the information and opinions mentioned above are purely based on Technical Analysis.