Nifty trades in a Narrow Range.

The Nifty moved in a narrow range today, just 48 points. The range contraction tells us that the market participants are confused. They are not sure of the direction in which the Index is likely to move, in the next few days. Now, this indecision has to end sooner or later. Therefore, a range contraction (as we have seen today) is an indication of big move to come.

Today’s narrow range also gives a trading opportunity. The high and low of the range act as resistance (high) and support (low). If the Nifty moves above the high of 2689, there is a buying opportunity, below the low of 2819, there is a selling opportunity. Stop loss ? Use your discretion.