As discussed in our previous analysis, the Nifty 50 Index gave a breakout of the key resistance at 16,400 (both static and trendline resistance) levels after forming a triple bottom at the base. The Index halted a three-day winning run on Tuesday and formed a Doji candle on daily TF, suggesting a temporary halt in upside momentum and is currently in a pullback phase of the upward impulse move.
After a breakout one should always look for a pullback for the momentum to continue in the same direction. The key resistance which was broken during the week will now act as good support and the index could retest/consolidate around 16300-400 levels again before it prepares for the next leg up. The overall trend looks positive from a short-term perspective. A fresh uptrend rally is possible only after the index breaks out of the 16,700 range (range since last 2 days), following which it above which it could move up to 17,000 levels.