So we have had a 200 point uncorrected rise in the NF since expiry day.
It always happens when shorts cover and the market had reached a point when the risk reward had tilted towards the Buy side.I had posted as much in my last update on the 27th of March– "We are seeing that the current levels in NF are at the bottom end of the two Vwap bands hence the market is not getting new sellers here as risk-reward is not very good for new shorts"
Here's a look at the current action :
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Unlike last month, we are now convincingly above the Orange vwap band and the white POC which is the composite of the entire move.
This level as mentioned before is a great SAR level and longs will be in control above this point.The yellow bands are the vwap of the buyer from expiry day at 5190 in the April future.
At about 5410 + the current move will be very extended and once again risk reward will not favor new buying.
Trade safe.