Nifty 01Feb’21: Doing nothing paid off well

Thanks to no steps towards direct taxes and financial markets from the budget today morning, benchmark Nifty rejoiced with a sharp bounce back recovering a major part of the recent correction. Literally a vertical rise from the index if you take a look at the 75min chart. But it’s the sustainability of this rise which is now more important. We should not forget that the recent sell-off of 1K points has been quite unexpected and so one should not completely turn on a dime and go aggressively bullish. Immediate resistances close to 14,500 is an important level to watch for. I sense that the index will consolidate this bounce back as it approaches 14,500. Strategically traders should see out this consolidation and then start to create positions.

Thank you for following my work and please feel free to share your thoughts and suggestions.

Trade Well. Trade Wise.