Nifty InstaView 03 Mar’21: Got Carried Away

Nifty View: Cracker of an up move from benchmark Nifty index in today’s session. Not only did the index break above psychological 15K mark, but it extended way further ahead and posted a confirmed confident close near 15,300. We now have a reversal of the short term trend on the upside. Recently we have noticed frequent reversal of this underlying trend due to the heightened degree of volatility. An important level moving ahead will again be the psychological 15K mark which will act as the short term support now. A look at the Volume Profile of the recent bounce back clearly reflects lack of volumes as the index extended up today. This implies “short covering” being the main fuel to the rally, and so a short term consolidation or correction of this move should not be discounted. With the index back in an up trend with momentum, strategically it is prudent to maintain a bullish bias and look to buy on dips and chase breakouts wherein conviction is high.

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