Medium Term Trend: ☝UP(Changes to Down above 14600)
Nifty @ 15100 Up 115 points : Strong Expiry!
Nifty has sharply moved 400+ points in last couple of days & that's exactly what was needed to put Nifty back in bullish trend. Nifty had a huge OI in 15K CE level and now a sharp move above 15K took traders by surprise and options writers were forced to cover their position. Its not very common to see option writers to run for cover but it happens every now and then and we should remember that markets like to surprise everytime.
In the last update we had mentioned that if 14600 support is taken out (which was the final support as per us) then we can see further prolonged weakness towards 14200 levels. However Mkts protected 14600 and has now moved back above 15100 levels which is very bullish sign indeed. We had also mentioned that Nifty has strong resistance in 15050 zone and nifty needs to take it out asap. Markets have managed to move above 15050 that too with a gap-up move today (which was looking unlikely couple of days back).
Now since this sharp upmove has come on (& just before) expiry day, one should observe and see if Nifty is holding on to these levels. If the upmove is just an expiry driven move then we should see a sharp fall back towards 14700 levels in next 1-2 sessions (this upmove should fizzle out in equally fast downmove) but if it does not and Nifty continues to show strength and move above 15225-240 levels then there is very strong likelihood of Nifty going all the way up towards 15800-16K levels.
Yesterday was a strange session. Mkts were closed for most part of the days and when trading resumed for extended session it took bears by surprise and triggered short covering in the last session. Couple of days back we were talking about bull trap at 15400 levels now this short squeeze is indicating a possibility if a strong bear-trap that has formed below 15K levels. That's how quickly market changes.
Happy Trading
To Join our Nifty algo buy/sell whatsapp message service during market hours, pls click⤇ Nifty Buy/Sell Algorithm or whatsapp @ 9319321906
To see our recent trading calls for Nifty Algo- Pls click ⤇ Past Trade summary (updated till 19th Feb).
No comments:
Post a Comment