On 21st,MARCH I discussed that we should limit our trading activity on NIFTY and at the same TIME should also cover the shorts.
we were looking for a pullback towards 22,150 in a normal sinario which we easily got but post that the required thrust to resume next leg lower had been missing 21840 was that key support level breaking which another leg lower was due as of yesterday!
with todays rally that level have shifted higher but broadly the TIME has come to increase trading activities on NIFTY again! this doesn’t necessarily mean to close your eyes and go short straight away but need to get prepared to pull the trigger as and when short term technical signals flashes conformations!
these 300 to 400 pt up days are perfect days to short monthly calls! but that requires a proper risk management mechanisms in place. unfortunately for RETAIL TRADERS the conditions aren’t compelling enough to buy OPTIONS.
Strategically still as traders selling OPTIONS would make money! until and unless VIX moves above 15 this is the only way to go!
Technically NIFTY is within the framework of TOPPIMG formation this PATTERN in gann theory is known as ASCENDING FLAT TOP” where INDEX keeps retesting the high every 3 to 4 weeks.
A daily close below 21800 would had broken it but since that dint happenned the PATTERn keeps rotating and this has kept everyone on their toes specially those who prefer to follow trend.
because they are trying to find something which is not there!
As I have repeatedly mentioned in my past articles 22600 is that level which should hold at highs few points here and there.
Once U-S-INDICES turns lower expect NIFTY to break 21710 soon.
Matter of more days nothing else! Once quarterly edgestments are done things should get back to basics!
https://ganninsides.com/2024/03/21/how-to-approach-this-pullback-on-indices/
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