Nifty continued its northward journey for the second day on the trot on January 11 wherein it gained 138 points to close at yet another new all-time high levels.

Last Friday, Nifty broke out from NR4 pattern (narrow range four bar on the daily chart) which is a bullish continuation pattern.

This indicates that the bulls have overpowered the bears as the markets could continue its upward momentum since the intermediate uptrend is intact.

With intermediate and long-term momentum readings like the 14-week and 14-month RSI in rising mode and not showing any signs of negative divergence, we expect the intermediate uptrend to continue.

In the options segment, we have seen Put writing at 14,200 levels. In the last few days, Nifty found support at 8-day EMA and bounced back which is currently placed at 14,196.

This level coincides with Put writing level of 14,200. Therefore, we believe that short-term trend will remain intact till Nifty is trading above 14,200.

While we remain open to further upsides, a short-term trend reversal would be confirmed only if the Nifty closes below 14,200.