Market is like a pressure cooker: Mohit Gaba

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Technical Analyst, Mohit Gaba:

The Nifty has had an inside day today, which means the high and the low of today's price action is within the high and the low of the previous days price action, this signifies that the markets is indecisive. To make matters worse the Nifty has closed right at the middle of yesterdays price action (mid point), in the first half of the day the nifty tried to test 5400 levels on the upside & toward the second half of the day the Nifty tried to test 5322 (is an important support level I mentioned yesterday) on the down side. However, in the last hour of trading buyers came in and supported the Nifty making it close right at the middle of yesterday price action (as I mentioned earlier).

The market is like a pressure cooker building steam in the sideways movement for the last three trading sessions, waiting to blow like a whistle on the cooker. On the upside if it breaks out above 5414 or on the down side if it breaks below 5322. Hence we should continue holding long positions if it breaks out on the upside, and if it breaks down then we should close long positions and go short.

Talking about biases, my bias is on the upside because the Nifty came back up from the lows of the day in the last hour of trading and also because "a trend is assumed to be in motion until proven otherwise", in this case the prior move is up.