Nifty started the previous week tad below 13,600 and consolidated in a narrow range for the initial couple of sessions. However, positive global market sentiments, later, provided an impetus to the ongoing rally and the index continued it uptrend for the rest of the week to clock new records and ended above 13,750 on Friday.
The bulls seem to be reluctant to give up and hence, we have seen intra-day dips getting bought into throughout the week. Nifty is trading near all-time high and although there's no limit on the upside, reciprocal retracements usually indicates where the markets could resist in such a trend. If we observe positional charts and take retracements of the previous corrections, then 127 per cent retracement of the previous correction from 12,430 to 7,511 comes around 13,770 and that is where Nifty is placed right now. On the other hand, the RSI-smoothened oscillator is trading at level above 95 on the daily chart which is a highly overbought zone.