Nifty InstaView 04 Mar’21: One Day Stands

Nifty View: Now this is getting difficult for short term traders as the benchmark Nifty index reacts sharply on the downside today after the recent sharp high-momentum rally. At the end, the index did manage to hold itself above the psychological 15K mark, but it’s the confidence in the underlying trend which is now heavily questionable. In these kind of high-volatile circumstances it is advisable to cut down ones trading bet sizes and trade less and wait out for the volatility to ease off and a proper trend (either up or down) to evolve. A look at the daily chart of Nifty index will suggest an “upside tasuki gap” kind of a pattern which brings in some hope of an upward rally. This can only be possible once today’s high of 15,235 is taken out. On the flip side a break below the low of 14,992 is sure to set in selling pressure.

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