"Follow the Vague and Intangible and it will become Definite and Tangible"
Anonymous
Here I have taken 6 months chart of NS for my study (courtesy icharts.in).From June it is observed that when ever the Bo-linger Bands have touched the upper end they have started correcting to touch the lower line of the band.As of now it seems that NS is in a hurry to touch the 6400 mark or even cross it and then correct downwards.Volumes were all time high when we crossed the 6225 Spot Thursday followed by a good run up till Diwali Muhurat Trading.If we go by the prize-volume behavior then it is a breakout on the upper side.
I would remain on the short side as NF is overbought and also after huge run up ,3 unfilled gaps Nifty needs a cooling. If we call this an up trending market then a usual behavior of nifty is that it always comes to check the support to verify the strength of the market.
On the upside we would be on a no mans land "Charts don't make the market Market makes it" . This time it has proved right till date especially in case of Bank Nifty.
My opinion is Nifty Spot correcting to 6140 before any further up move & am already short since 6275 and would add more at 6380.(Reason being with almost 170% OI in 6300 puts some one is surely going to slaughter the writers of the put -- last month i.e in October this was the case with 6200 put when NF touched the 6317 mark)
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| Source : www.icharts.in |
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