Short covering !!

A few things that I believe to be noted after todays trade is, one Bank Nifty has almost achieved its tgt of the trendline breakdown at 8262, two the range on Bank Nifty extended to a good 400 pts. in a single session, three the volumes are huge, and last the price candle has drifted away from its 5 EMA on EOD charts...

Also, considering that 8180 is a strong support, the daily momentum indicators look tired and exhausted, we may witness a short covering/consolidation on Bank Nifty. If it manages to stay above 8180, we may witness 8500. Below 8180, Bank Nifty may sink down to 7800 levels or lower.

Coming to Nifty, here again theres an important level to watch out at 4801. MacdH looking tired, Stochastics in the oversold region, volumes heavy.

Not to forget that tomorrow is last thursday of the month, expiry of Jan Fut. All probabilities of witnessing a short covering.

Above 4885, Nifty may test 4937-4955. If it manages to break 4801, we may witness 4600 levels.

Am inclined to believe that we will witness a short covering in the coming session, however, to trade good, we should blow with the winds... Happy Trading !!





Disclaimer: The said technical analysis is a perception based on various charting methods. Trades on my opinion are to be done solely at your own discretion.