NSE:NIFTY Nifty 50 Index
Yesterday's downmove & today's upmove caught everyone by surprise. Now shorts are trapped, above 8250 more short covering will come which might push Nifty into heavy 8350-8450. Don't forget Market is in bear grip until 8600 is crossed on a weekly closing basis. Bears will be comfortable selling in the 8350-8450 zone for a target of 7900-8000. Let's see how it unfolds.
Comment: Today's closing is very important, if Nifty closes above 8250-8270 only then it will go further else might reverse very quickly next week.
Comment: As mentioned earlier, today's closing above 8250-70 zone is very important for the bulls. Nifty might reverse the whole week's gains very quickly. Nifty & Bank Nifty both touched last weeks highs & now seems to be ready for the downside. Watch out!
Comment: Nifty opened gap down caught bulls on wrong footed. Since Weekly trend is down so buying at higher levels wont make sense. It was clear from FII's data that they are not buying much on the upside and rally may fizzle out anytime. If today Nifty closes below 8180 selling pressure would intensify. Revisit to 7900-7950 zone is likely. BankNifty also seems to have reversed from heavy resistance zone of 18700.