The day also saw the Nifty closing near day's high and at higher levels from the day's lows, and all this with very high volumes, 3-3.5 times higher than the average of last 30 days.
OI of Nifty future was up by 14% on Friday while BankNifty OI has reduced a little. Both the indices future contracts have massive short side buildup, a little reduction will confirm a short covering rally, which is due in oversold markets.
10747 to 11298 is the broad range with 10995 as an important level in between.
Consolidation between 10995 to 11100 will strengthen the expectations of further upside upto 11300 levels.
Courtesy COVID 19 panic, the momentum on downside is so strong across all major markets. There has been some not so good news yesterday too, but the markets have already over reacted to most of it.
Incase market decides to ignore the bad news, (which will happen sometime soon) we may see a bunce upto 11200-300 levels,
incase it does not happen now, expected levels on downside are marked on the chart.
We do need more confirmation of an uptrend, oversold markets, though Friday's pull back from day's low levels are significant.