Is that really a reversal of short term bull trend ? If yes then will market fall directly so that everybody could understand it easily. No no my dear. It will try to trap all retails investors and then it will confirm a direction. If everybody will understand that market will fall from here then the big question is who will buy here. If there will be no buyers then to whom sellers will sell.
I think market will spend some more time here and we may see a volatile week overall ahead.
Until unless nifty give close below 5115 bear market can't be confirmed. As per Nifty EOD charts formed a big bear engulfing pattern which indicates weakness in nifty. Nifty future closed at 5058.80 -1.73% and open interest increased negatively by 1.01%. Yesterday we had seen long build up in nifty future. Today Fii bought 6616 contracts.FII have booked profit in nifty future which was made on Friday.
Nifty 5100 call added 226850 contracts in open interest and 5100 put decreased by 678300 contracts from open interest. Nifty 5000 call added 422250 contracts in open interest and Nifty 161550 contracts in open interest, Indicating that nifty may take some rest around 5110-5120 level. But up side 5095 level will resistance also.
Further conclusion with all data be positional short in nifty with stoploss at 5110. But a more day need for clear indication for next trend. But I expect that a big move is going to happen in near term. Any close below 5115 we may see big fall and this time 4780 level expected not supporting. The death cross is going to happen on chart in near term.Be alert and expected that nifty may fall heavily.
