The market today did exactly what it did last Monday.
Open up outside of value and range and run higher.We know in Profile, whenever the market opens out of value and outside of range, there is a possibility of a large move in either direction.
With the markets accepting the gap-up within the first hour of the day, the possibility of a continuation move was higher than a fall back and re-test.
At one stage in the afternoon the quick launch from 5737 levels to 5777 levels was enough for adamant 5700 CE writers to start covering their positions.
We generally had seen the market and the global markets too to be bullish for this week, but the strength of that 40 point move even took me by surprise!
There have been enough adjectives to speak about the strength of the BN and by extension SBI. This index still has to give us a sweet spot for shorts to be placed on.
I’m sure quite a few of us took some shorts mid-day today, more out of disbelief in this big upmove than from any strong message for shorts coming from the market.
The message from the market is always very clear : above VWAP and Above value do not attempt shorts.Scalp trading is excused.