It was such a perfect doji in the last session and the fact still remains that NIFTY has not yet touched its 200 DMA.Is it like biting the elbow.. so near yet so far for the bulls ?
In any case, the current view is bearish, but bulls reaching the 200 DMA milestone and rejoicing around that level for one day or two is also not ruled out before bears can take control.
It is better to look for shorting opportunity if 200 DMA is breached and may be also employ a martingale strategy of accumulating the shorts at higher levels. If it seems risky to do so, then it might not be as risky as we perceive it now.
A near vertical break of 200 DMA and a further bull run without even testing 3250 levels does not seem like a possibility at all at this stage.
Another way of looking at this is to simply wait till this steam of buying subsides and a reversal pattern is made and then enter on the short side. In any case I still hold the view that a break below 3140 seems to be remote atleast for the April series, but a pull back till 3250 seems like a good possibility.
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Happy Trading
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