For almost two months, Nifty has been trading in a narrow range of 15,600 to 15,950.
Last week, Nifty found support around its 50-day exponential moving average (EMA) and reversed north. At present, the 50-day EMA is placed at 15,581.
The daily ADX line for Nifty has reached below 9, which can be considered extremely low as compared to historical readings.
In this kind of setup, we can expect the ongoing consolidation to end soon.
The primary trend of the market is bullish as Nifty has been holding its level above 50, 100 and 200-day moving averages.
Nifty is less than a percent away from its all-time high of 15,962.
Though the market has been trading near the all-time high level, the moves in the largecaps have been very choppy in the last many weeks.
The choppiness is expected to be there unless Nifty surpasses the level of 16,000.
Midcap and smallcap stocks have resumed their outperformance after a small consolidation.
On the derivatives front, there has been continuous Put writing at 15,700 and 15,800 strikes, which indicates that longs in Nifty should be held with the stop loss of 15,700.
Any level above the recent swing high of 15,962 would push Nifty towards the next targets of 16,200-16,300.