A faulty internet connection robbed me of some precious blog-time from about noon and I apologize for the unanswered questions and my absence during an interesting move which unfolded.
Here’s the profile chart of the Nifty Future
The profile picture is again “b” shaped which speaks about shorts being covered.This can be checked with the discount/ premium of the future price.
You can also see that the value did not catch up with the action in price.So all the young bulls, be cautious yet, though shorts have been covered there is no evidence of aggressive new longs being taken.
This will have to be validated though, at the open tomorrow where if we do not see a large up movement in the first 60-90 minutes, then the possibility of a side-ways move or a test to a previous reference point ( in our case 5065/78) increases.
Hope to catch you all in the morning.Some interesting comments about global markets in the comments section. Please keep them coming.