Shazia makes some points.
"On cnbc tv you said that if nifty crossed the 4760 mark then it may well be on its way to form another bubble, why ?"
My Notes: The 4740 - 4760 zone has acted as resistance during the current rangeing market. This is also the level where the larger picture cup & handle or inverted h&s pattern is confirmed. Therefore with so much compression in prices just before 4760, a big expansion in prices may come if 4760 is broken. prices may continue going higher beciase (a) everyone else is buying, and, (b) 'Liquidity'. That's how bubbles are made.
Again in comments today:
"The nifty is now more squeezed in a narrow range having almost the same top but ascending bottoms. Technically it looks like the bulls havent given up buying but the bears have given up selling beyond 4750, which is why there is no short squeeze to pull the markets up."
My Notes: These are usually the reasons for the market remaining in a range, which is what it is doing now. Bulls buy at support, and, either bears sell at resistance, or as you suggest, bulls themselves get out at resistance, while bears stay away. With the anbsence of bears, the bulls will have to get enough confidence to push the markets up. This could lead to a significant rally, because first the bulls will push prices, while intiially at least the bears may remain on the sidelines.
My grateful thanks to Student of the Markets for his kind words and sensible advice. Given here:
"today being the teacher's day, I want to express my deepest respect to you who has taught me so much in trading. The most important things I have learned from you are - Market is bigger than any analysis ( including yours! ) ; The trend is intact until it is broken ( i.e. do not anticipate end of a trend); Focus on following a disciplined strategy rather than focusing on making the correct call as that is what works in trading."