The best part is many largecap stocks have bullish closing hence today should be highly stock specific day. The idea is not to focus on the Index but to focus on the stocks. In short, we should enter some consolidation phase between 15850 to 16400.
Nifty. The most important level to watch is 16350. Above it is 16440. Incase we cross 16400/440, we can see a sharp rally towards 16700 in the coming week. For the day 16350 should be watched carefully.
BankNifty. The star performer. It led the rally yesterday due to fall in Indian bond yields and some covering of shorts. Bank Nifty has an interesting close at 35100. Weekly trendline resistance is at 35300. This is the level which will decide the fate of this rally. Point is BN closed above the range of the last 14 days which is bullish.
IMP. There is no concept of short covering. It is a myth talked about by people who don't know what is happening. Why would anyone close profitable positions on the short side. They will only buy when fresh buying comes in and breaks the 1st resistance level on the upside. Then shorts start buying to close their positions which is common sense as the resistance level was their stoploss. Since some buying followed by closing of shorts takes the market higher and people start dancing on their seats.
Clear buy on dips but the focus will be on stocks and bank nifty option intraday trading and you must check out our bank nifty option tips as we have been voted as best Bank nifty option tips provider in India
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