Nifty 27Jan'22: Possible Double Bottom on the intraday charts

Another negative close from the Nifty benchmark index today – losing 173 points to post a close at 17,110. The day's loss could have been worse, but thanks to the banking and financial stocks, especially the public sector ones, which led to a phenomenal upward momentum leading to a decent bounce back for the Nifty index from its intraday low of 16,862. The underlying short-term trend of the index is down, and its the intermediate trend which is now vulnerable for a reversal. Many sectors like IT, Pharma and Media have already turned down on its intermediate timeframe and can be looked at as shorting opportunities. We have an early sign of a double bottom reversal pattern on the intraday charts of benchmark Nifty , and so this can lead to some bounce back, if at all, in the following few training sessions. However, that does not mean that strategically one should go aggressively bullish ; on the other hand, one should be extra careful as the degree of underlying volatility is still exceptionally high.

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