We saw the volatility in the Bank Nifty first hand today, where a move below VAL for most of the morning session turned around to catapult the index back above value high by the afternoon.
Have a look:
The index ran in danger of closing below value low, buy a strong showing by ICICI Bank, SBI bank amongst others took it back up for a close yet again higher than previous value.
You just cannot short this index till it closes below value. The sellers are present but not aggressive enough and dare I say a bit mortified by the strength shown by buyers. We did another of the now common 100 point runs within minutes.Direction Up.
The chart shows the presence of a small seller in the 5535-5540 region.
He has managed to move down price by about 20 points in the past three days, but we feel that he may not be able to keep it for long.
We’ll know tomorrow.