Are there any specific tools or method to find out whether Nifty is going to trade RANGE BOUND is going to BREAK OUT?

General
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You may want to try the ADX indicator.

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There are several ways to know this

  1. Most important is ADX. A rising ADX especially above 15-20 level is considered good trend. Falling ADX or Flat ADX is considered trading range. ADX starting to rise from below 15 levels is considered to be good breakout signal. Direction has to be determined by other indicators like DMI, Mov Avgs.

  2. There are NR4 and NR7 patterns. Breakout of them is considered to be good breakout.

  3. John Carter’s Squeeze Indicator is a good indicator to identify strong breakouts.

  4. Triangles, Penants, Flags and smaller Rectangles/Boxes are considered trading ranges. Breakout out of their them are of good ones.

  5. Bollinger Bands starting to expand is sign of breakout.

  6. ATR starting to rise from lows is an indication of coming breakout.

  7. Flat Moving Averages are signs of trading ranges. When the start to move in any direction is an breakout indication.

  8. And one of the most famous ones the Turtle Method - breakout above nPeriod High/Lows. I think they used to use 20 Days and 55 Days.

But do remember, like everything else in Technical Analysis, breakouts do fail. Sometimes these can be just pullback test of the breakout point while other time it could be complete failure.

Would recommend Al Brook’s “Trading Price Action Trading Ranges” book.

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Narrow Range trading strategy or NR7 Trading strategy is a breakout based method which assumes that the price of a security trends up or down after a brief consolidation in a narrow range. The default look back period of this strategy is 7 days which means that if the price range of any particular days is lowest as compared to last 7 days, then that day is termed as NR7 day. Here the range is calculated as the difference between High and Low of the particular day. The day following NR7 day acts as a confirming factor on where the price will move further. Breakout of the High of NR7 candle with high volumes indicates bullishness, while breakout of Low of NR7 candle indicates bearishness. The philosophy behind the pattern is similar to the Bollinger Band Squeeze: a volatility contraction is often followed by a volatility expansion. Narrow range days mark price contractions that often precede price expansions.

From the below link you can download the AFL code and backtest report for NR7 strategy:

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Helpful, thanks!