Nifty has been in a downward move since its ATH on 16th Feb'21. Market has not collapsed during this phase but it has chopped around in a way that people are feeling a lot of pain. Why Pain ? - When market starts to fall, people align for a down move and market is giving a uptick, when people align for a up move, market starts to move down. Its a nightmare for trend following.
Nifty levels of 14264 was supposed to be a breakdown level, but it has not broken down from that. What is visible from short term chart / price action is that there is lack of selling around this level. A move past 14697 only will make the sellers go in trouble.
How to trade such markets ?
If you are a trend follower, you are already in a deep drawdown phase since Feb, its going to be hard to make a comeback in this market. But if you are a mean reverting trader, you are living in a paradise. Take each day as it comes, analyze the structure of the day and play around references. The absence of a strong buyer in market is making it easy to sell around the resistance reference and lack of selling at lows is making it easy to buy around support.
For example - The best way to move down , open gap down below the support ref, market did the same on 22nd April. What happened next ?
There was ZERO follow-up on sell side and market made a comeback inside the range. So its very important now a days to focus on the day structure rather than what view you are carrying when going into trade for the day.
Stay Safe and take good care of everyone around you.