Nifty: At upper end of resistance band. Taking calculated short

NSE:NIFTY   Nifty 50 Index

In my last update, it was suggested that on the down side 17860 is important level to watch out for and that Nifty has a high probability of testing 18030 odd levels in a day or 2.

Next day, On a 15 minute candlestick pattern, Nifty made a closing low of 17861 and bounced back immediately and then made a closing high (15 min candle) of 18023 odd levels.

Both levels worked very well.

Today Nifty has opened gap up and is trading at the upper end of the yellow resistance band.
Now is the testing time... If Nifty sustains above the yellow resistance zone then possibly Nifty might head further towards 18200 / 18400 odd levels.

Unable to sustain would suggest less Buying interest above 18000 and that would give an upper hand to Bears to go short again.

Remember this rally has been led by short covering by FIIs.
There has to be follow up buying for the rally to be sustainable.

As suggested in previous post, I was ready to see this level and on signs of rejection would be taking further action.
- Nifty is trading below it's opening price
- Nifty is trading below VWAP
- Reliance and ICICI Bank on expected lines showing profit booking at resistance levels mentioned in their respective post.

Given the cues, Now Adding to my short position (again it is hedged position).
I would be closely watching Friday's close. I could be wrong and I am willing to take a calculated risk at current levels.

Take care & safe trading...!!!

- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- Use this for educational purpose
- Any decision you take, you need to take responsibility for the same
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For Positional play, today's close is very important - Watch out for 17860-17800 odd levels on the downside. If taken down, it could trigger more selling pressure. Bears might start tightening their grip -

Between 17860-17965 odd levels and the Battle of Bulls and Bears is still in balance - consider partial profit booking

above 17965 Bulls might have an upper hand
- going forward closing above 18035 on daily charts and I would consider exiting my short position


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