A weak bounce in Nifty. Sustainability questionable

On 20th March Nifty started with good strength after the panic selling on the previous day and opened up by more than 100 points. Good strength was observed during the 1st half of the day and Nifty crossed 23300 at some point inching steadily towards 23350. However, then came the selling pressure and that entire gain of the 1st half was reversed, finally closing where it opened with net 112 points gain for the day.

This up move was not supported by the MHAF candle formed. We could see an inside bar type formation with bearishness persisting. Nifty is well below the EBR/EBL bands as well indicating probable further downfall ahead.

Our hypothetical short Futures position opened at 23250 had a stop loss placed at 23560 (spot basis) which will be trailed to 23410 as per the table above on the opening of the next trading session on Monday the 23rd. The next bullish trigger may come above 23520. Our unrealized profit at present is 110 points. No real money position in the F&O combined strategy.

Have a nice weekend ahead. Cheers