souptikgupta
Long

Nifty short covering expected

NSE:NIFTY   Nifty 50 Index
116 3 1
Last week on Friday I had published my idea about going short since there was breakout below the short term support trendline . My first support target was 8161. Which is the 78.6% retracement level. This idea has worked out. Today, nifty             made a low at 8062.75. The moment 8062.75 level was reached, there was a sudden bounce back. Although this bounce was short lived, it definitely showed that 8062 is acting as a support. The intraday recovery that happened lacked follow through and the closer nifty             got to 8100, immediate retracement was seen. This was because there was either fresh shorting or a bit of long unwinding by intraday traders(those who went long around 8062). The general mindset of traders is bearish . The good thing I observed today was that during the last 30 minutes of trade (stronger hands trade during this time, eg. ETFs) there was no massive shorting. The global cues remain positive as of now, US Markets are at an all time high. FII data suggest that some fresh long positions have been added in the index derivative segment today. The RSI indicator on the 2 hour chart is below 30 now. If nifty             crosses T4 with momentum then it will definitely go higher. On the downside 8000 is a strong psychological support as well as the support indicated by option data. 8000 december put has the highest open interest as of now. If nifty             breaks 8000 then definitely T2 will act as a support. All these factors, point to a possibility of short covering. The first target will be 8176 and then the T4 (around 8230). I think there will be some short covering just for the time being till the above mentioned levels. Then fresh short positions will be added again since the long term trend remains bearish .
Nice. Can you help with the source of FII data?
Reply
@kshitij, It is available on NSE website.
Reply
kshitij souptikgupta
@souptikgupta, Cool.
Reply
EN English (IN)
EN English
EN English (UK)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
HE עברית
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out