Nifty 22Dec'20 - Is the Bounce Good enough?

Thanks to a 2-bar positive divergence, the benchmark Nifty50 managed a clean sharp bounce back today. Sub-13,200 the index has managed to find demand from an erstwhile channel which did act as a good source of support. Going forward this “blue” channel will act as immediate supports from the index. On the upside now, the index needs to deal with supply from two sources - a rising channel and the congestion zone, both os which infuses supply within the range of (13,400-13,600) for the index. As long as 13,600 is not taken out on the upside, selling pressure is likely to persist. Strategically stay light in terms of your trading positions.

Trade Well. Trade Wise.