Currently Nifty rallied much within few days. The aggressive upmove at life high levels is alarming, because smar money won't buy at agressively at such high levels. They would look to offload/ book profit at such high levels.
Look at the biggest bullish bar in later stages of rally. Such strong bullish bar is ideal at breakout or while making new swing high. Here it is at the highest level. Exact opposite happens while bottoming out biggest bearish bar in later stages of sell off signals reversal. Check AU Bank idea. Will add up more examples in comments.
Check below is the move of bank Nifty showing similar move on 15 Feb 21. This is how Bank Nifty topped out.
Current move of Nifty is similar to Bank Nifty on 15 Feb 21 before topping out
Another similarity is the leadership. In Feb 21 Bank Nifty was leading and it gave such strong move and topped out. Now currently Nifty 50 is leading and showing similar strong bullish momentum.
If gaps up would more ideal to short, but ofcourse after observing the price move of opening minutes
Even Nifty bank is consistently failing to make new highs. Every new high is rejected. Bank Nifty also developing bearish angle in second image. Check charts below.
Keeping a short term SL at 17500 rounded off as Fibonacci extension levels come around 17468 risk takers can initiate short positions.
Even Nifty IT move looks streched link attached.
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Please adjust Charts posted form Mobile, currently unable to access computer. 🙏🏾😆
True very much true this is what I thought when nifty touched 16k, than again at 16.5k now at 17k, but was proved wrong last 2 times. Really headache for ppl running delta neutral strategy
varadtambolkar
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@akhil2fast, that levels were just after the breakout. Currently move looks streched.