Nifty has been witnessing a choppy trend for the last six consecutive weeks, wherein rallies are sold into and dips are getting bought into.

'Sell on rallies' and 'buy on dips' kind of strategy has been playing out in the current market scenario as far as benchmark indices like Nifty and Bank Nifty are concerned.

However, the primary trend of the market is bullish as short-term moving averages are above medium to long-term moving averages and Nifty has been holding higher tops and higher bottoms.

In the last two sessions, Nifty witnessed a correction of almost 600 points from the high.

On March 15, 2021, Nifty found support at a 50-day moving average and bounced back sharply from the low.

The upward sloping trendline, adjoining the lows of weeks ended March 27, 2020, November 6, 2020, and February 5, 2021, projects the strong support around 14,700 odd levels, which coincides with the 50-day moving average support.

The recovery from this support has increased the chances of the resumption of an uptrend in the Nifty.

It seems that Nifty is on the verge of ending the recent consolidation and entering the bullish momentum phase again.

The Nifty Smallcap index has outperformed the Nifty with a huge margin by not even breaching its 8-day EMA on a closing basis.