Nifty50 skyrocket on Friday topped the 10,900 zones with a formation of a bullish trend on the daily chart. The index recorded buying at lower levels as pointed by the “Hammer” formation in the previous trading session. Friday’s session boosted up some confidence among the traders by taking out 200-DMA resistance.
The Index witnessed strong short covering at low levels again in Thursday’s session. The market performance was way better than anticipated but ended up trading in a narrow range of sideways trajectory. Nifty remained neutral for most of the day until its last hour recording expiry-led moves. The index moved past 10,700 points and closed with a gain of 1.15 per cent or 121.75 points.
We talked not only about the rebonds but also the possibility of selling at higher levels in our previous article. Trading took place exactly on the predicted lines with Nifty saw a strong bounce in Wednesday’s session and only got stronger and moved past 10,800 points as the day progressed.
In Tuesday’s Session, the index turned out exactly on the expected lines with Nifty succumbing to a corrective move after facing 200-DMA resistance for several days. The market witnessed a negative opening and remained negative in the whole session. There was not any single point where index bounce back, as it remained in the negative zone for the entire session. The index falls below 10,600 points and closed market session with a loss of 1.81 per cent or 195.35 points.
In our daily routine of looking at investments – Returns, Liquidity, Volatility, and Predictability matters. People might be wondering about this approach but there is nothing wrong with it, instead, those who successfully employed and get much of this right are better than 99% investors in the whole market. Due to our busy daily schedule, we only look at what investments are instead of looking at a deeper meaning of what they are.