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Last week, we witnessed swings on both sides as the market clearly looked clueless.

Importantly, the overall trading range has shrunk drastically, which is a sign of consolidation. A similar sort of action was seen across the globe as well and hence, with a lack of major triggers, Nifty, eventually concluded the week with more than a percent cut.

Clearly, the market is trapped in a slender range and last week it vacillated within 450-500 points, which is well below its recent average.

Of course, India VIX which was at 12-year high towards the end of March has cooled off considerably to enter sub-40 mark.

If we observe the daily chart, Nifty is gyrating within the boundaries of a ‘rising wedge’ pattern and we are approaching the ‘apex’ point now.

So theoretically, we are likely to see a breakout happening soon (probably in the next 2-3 sessions) from the consolidation.

As of now, we are hoping for the breakout to happen in the upward direction (above 9400), which would then propel the rally towards 9,500-9,700 levels.

However, this is just an assumption as of now and hence, if Nifty breaks lower before surpassing the upper boundary, traders should exit longs and then get ready for some correction in the market.

Therefore, 9,400 on the higher side and 8,900 on the lower side are the levels to watch out for. At present, it’s advisable to keep a note of the above-mentioned scenarios and should ideally adopt a stock-centric approach.