Down side pressure in Nifty continues despite an attempt to move upwards

On June 1st, buoyed by positive signals from global events, Nifty attempted to kick off the week with a bullish surge. It opened with a gap up of over 100 points and climbed an additional 80 points, but could not sustain this momentum as FII selling pressure emerged. Persistent selling pressure dominated for the rest of the day, bringing Nifty down to near 23350 before closing at 23382 for the trading session.

The MHAF chart reinforced this bearish trend by producing a prominent red candle. The stop loss level, as per the updated spreadsheet below, has been reduced to 23974, and if the market opens flat tomorrow, it will be further reduced to 23790. Nonetheless, our strategy does not adhere to these levels, as it has provided us with a fixed reversal point located much farther away at 24005.

The short bias position we initiated on June 1st is currently in a favorable spot, with an unrealized profit of approximately Rs 46,000. We intend to maintain this position without any changes until either the reversal break-even point at 24,005 is surpassed or we can book around 80% of the maximum potential profit of Rs 1.41 lakh.

Cheers and happy trading.