Nifty is consolidating with a bullish bias. Waiting for a breakout. Our position gaining profit every day

Since the beginning of the August series, Nifty has consistently demonstrated strong performance with minimal volatility. The India VIX has significantly decreased, and since establishing our position as outlined in the previous post, we haven't faced any unrealized MTM losses. Up until Friday, July 31st, Nifty produced five consecutive green candles, and on August 3rd, with the implementation of the new CAS system, a significant breakout candle to the upside appeared. Since then, Nifty has been consolidating within the body of that candle, awaiting a signal for its next major move.

As the consolidation phase continues, the MHAF chart above is beginning to show signs of fatigue, with relatively smaller candles forming each day and a slight shift to red yesterday. Nifty has also moved into the zone between the EBR/EBL bands, indicating indecisive consolidation. If a corrective move occurs in the next one or two sessions, a short trigger might be breached, currently positioned around the 24410-420 level according to the spreadsheet below.

Nonetheless, even if the bearish move is validated by breaking the short trigger, we do not intend to reverse and go short because our predefined reversal point is 24058, which remains distant from the current nifty level (24583).

As demonstrated earlier, we currently have an unrealized profit of Rs 57,000 and are aiming for a target profit of approximately Rs 72,000. This will allow us to book 80% of the maximum potential profit, and we intend to close the entire position for the month once this target is reached.

Cheers and happy trading.