When you get a gap up, there is always a question mark on whether the gap will be closed or whether there will be continuation.
That dilemma to fade the gap or not to was deliberated at the open this morning.
So far this morning we have done well to stay with the gains and at the time of this post we have made it to the 5504 level, the scene of yesterday’s breakdown.
OF is still blue off the open, but we have booked part longs near 5504.
Also we are introducing Reliance OrderFlow and SBI Order Flow charts to our trading room.
With lot sizes of 250 and 125, these will be handy instruments to trade on OF.
This is the morning action so far :
Looking ahead to the day in the Nifty, we are waiting to see the auction process develop over 5505-5513 for yesterday’s highs or whether 5466 lower down is protected.
The Bank Nifty is trading around the 3 day balance area of 10560 and will rotate here.Remember it is an inside day in the BN and a break-out will be an interesting development.