The market has been in a narrow range for over a month now. If we take a glance at the intra-month movement, we can see Nifty trapped in a slender range of 500 points.

The monthly chart now exhibits two back-to-back ‘Doji’ candles with very small upper and lower shadows. This is a sign of consolidation and the market seems unsure of this direction.

In such a scenario, one should avoid taking any directional view till the time we do not get a range breakout on either side.

Considering the historical trend, the month of August is known for bigger moves. So it would be interesting to see whether history repeats itself or not.

As far as levels are concerned, 15,850, followed by 15,950 are the levels to watch out for and on the other hand, the sacrosanct support is placed at 15,550–15,450.

If the breakout happens on the upside, then we may not see a bigger move, but if it happens downwards, then brace yourself for some tough time.

In the last fifteen months, the market has not experienced any meaningful correction and has been enjoying a strong bull run.

If we see a convincing breakdown below 15,450, then a decent correction is possible.

Till the time the market is stuck in a range, one should take one step at a time and continue with the stock-specific approach by following a proper exit strategy.