This week should really unveil finally where things are heading with the Nifty.
We are up again at an important and difficult mark where lies the real proof of its resilience, for in the previous rally it had reacted sharply and turned around from 2575 levels to rest at 2475 levels. The difference, if we should be looking for one, is then these were new historical high grounds. In this attempt these would be revisited with the memory of hurt and pain: High peaks have never been known to yield without extracting their due. Have the dues been paid? In pain, yes. So then there is another potential pay-off here: In exchange for pain one learns to respect what causes the pain, and with this giving of respect, one earns wisdom.
The wisdom here is consolidation.
Neither was there consolidation at the higher levels in the past, nor was there consolidation at the lower levels following the crash. It's just been one rollercoaster ride so far. One hopes that, yet again as we approach the highs, we take some time to rest and consolidate and not rush in desperately. The pay-off for the pain would then be complete, and the onwards march easier to accomplish.
Rather philosophical to an extent, but true nevertheless.
The levels to be careful at are first at 2555-2557. Further up 2565-2575 region may test the climb.
Down below there is support at 2530 and 2512 to begin with.