Nifty - Sleeping Beauty

The Nifty lost 12 points over the day to close at 4858. Another
frustratingly range-bound day at the markets yesterday as the
index traded around the opening levels the entire day with mild
volatility of 10-20 Nifty points. The same was expected as there
is a complete lack of global/local triggers. However, the fact that
the Indian markets did not loose much ground yesterday despite
some global weakness has to be read positively. The index
continues to trade within a textbook like “Symmetrical Triangle”
pattern with the upper trendline around 4900 and lower around
4830. The “sleepy” price action or lull in the last few days is
exactly what the above-mentioned pattern requires before the
breakout. Interestingly, we are seeing pockets of strength in
Metals, IT, Capital Goods and Banking space that is giving us
the hint that an upward breakout in the offing. After many days
the Realty space too made a comeback in a weak market, which
is sentimentally positive. For the day, support seen at 4850 and
4834. Overall, the indices are on the verge of a breakout and
hence one should keep a close eye on 4900 and 4830.