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

Yesterday marked the weekly expiry at NSE, and Nifty reversed direction with consistent bullish momentum. The selling pressure that had pushed Nifty down to the 23100 level was effectively countered in the latter part of the session, allowing it to return to the support zone that had been breached the day before. The expiry session concluded with a daily gain of 120 points, forming a bullish hammer-like candle. Although the MHAF chart did not confirm a bullish reversal, it indicated a weakening of the bearish trend by forming an inside red candle. Today, the bullish momentum persisted with low-volatility positive movements, enabling Nifty to easily rise to 23400 before slightly retreating to 23380.

The current price movement appears bullish as Nifty has surpassed the EBL/EBR bands, exceeded the trailing stop loss at 23329 according to the spreadsheet below, and is steadily approaching the daily bullish trigger set at 23435. A bullish reversal will be confirmed only if Nifty closes today above 23435. In that scenario, the initial stop loss would be around 23237.

Nonetheless, our trading approach does not necessitate reversing positions and going long at or above 23435, as we have already established a reversal point at 24042, which remains distant from the current Nifty level. Despite the unfavorable price movements over the past two days, our unrealized profit is approximately Rs 72,000.

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

LATEST UPDATE:

As we approach the end of the trading session, the morning's bullish momentum appears to be fading quickly. Nifty has moved lower and is on the verge of forming an inverted hammer candle, which is not particularly favorable for the bulls. Consequently, our unrealized profit has increased to approximately Rs 88,000.