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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