Cycles of expansion and contraction.

Narrow ranges are patterns for profit. Liquid markets will usually not stay inside a narrow range for long. Therefore, when the Technician detects a narrow range pattern, she waits patiently for a breakout from this range. The direction of breakout is usually unknown. There is a general rule that consolidation will lead to a resumption of the trend, but this rule does not work at times of trend reversal. Hence, the direction of breakout is unknown.

For past seven days, the Nifty has been inside a trading zone. Quite narrow. We should expect a move out of this zone, soon enough. Have a look at the chart.