Nifty showing bullish strength but need to come out of the zone

Yesterday was the weekly expiry at NSE and Nifty took a U turn with consistent bullish strength. The selling pressure which brought down Nifty towards 23100 level was nicely defeated in the later half of the session and it went back to the support zone which was broken on the previous day. The expiry session was closed with a daily gain of 120 points with the formation of a bullish hammer type candle. The MHAF chart didn't confirm bullish reversal but displayed the weakness in the bearish trend by forming an inside red candle. Today the bullish strength continued with low-volatile positive moves and Nifty easily climbed to 23400 before coming down slightly at 23380.

Today's price action is looking bullish because Nifty has now crossed the EBL/EBR bands, took out the trailing stop loss at 23329 as per the spreadsheet below and nicely inching towards the daily bullish trigger placed at 23435. The bullish reversal will be confirmed only if Nifty closes today above 23435. The initial stop loss in that case would be near 23237.

However, our trading strategy would not require us to reverse positions and go long at or above 23435 because we already have predetermined reversal point calculated as 24042 which is still far away from the current Nifty level. Despite last two days of adverse price movement our unrealized profit is hovering around Rs 72,000.

Cheers and let's see how Nifty closes for the day in about 3 hours from now. Happy trading.

UPDATE:

We are near to the closing of the trading session and it seems the bullishness witnessed in the morning is evaporating fast. Nifty has drifted lower and is about to form an inverted hammer candle which is not very friendly for the bulls. Our unrealized profit figure has also gone up accordingly to around Rs 88,000