The setup is fairly simple.
After a prolonged period of downside movement, I’m expecting a short-covering bounce in Nifty.
My upside target is around 22,965.
However, the key level to watch is 22,600.
For the trade to become convincing, Nifty needs to break and sustain above 22,600 with strong volume. A breakout without volume would not be enough confirmation.
I also want to see Bank Nifty supporting the move, along with favourable global market cues.
So, the setup is:
22,600 breakout + Volume + Bank Nifty confirmation + Supportive global markets = Bullish setup
Target: 22,965
The idea is not to chase the move blindly, but to wait for confirmation that the short-covering rally is actually gaining strength.
After a prolonged period of downside movement, I’m expecting a short-covering bounce in Nifty.
My upside target is around 22,965.
However, the key level to watch is 22,600.
For the trade to become convincing, Nifty needs to break and sustain above 22,600 with strong volume. A breakout without volume would not be enough confirmation.
I also want to see Bank Nifty supporting the move, along with favourable global market cues.
So, the setup is:
22,600 breakout + Volume + Bank Nifty confirmation + Supportive global markets = Bullish setup
Target: 22,965
The idea is not to chase the move blindly, but to wait for confirmation that the short-covering rally is actually gaining strength.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.