Bulls took full charge again ?! Markets looking extremely overbought ?!

Yesterday's move almost took everyone by surprise. The move beyond 3630 to almost test 3700 levels, made bears run for cover helplessly.

If the move is looked at in simple terms, as we were discussing, it tested the crucial level of 3565, took support and again moved to test the range high. 

What next?

Now that the market has again moved to test the range high, the higher it goes, the severe the fall will be. This has been the expectation and view for quite some time, but then when will that happen is the tough question to answer.

I still anticapte that the money that came in last week/month will be pulled much before election results are out and not after. So if at all a major correction has to happen, it is highly likely that we see that in these three remaining sessions. Any break below 3618 at this stage is going to see much lower levels.

There is a possibility of testing 3730 levels and the max that this can rally is only till 3780. With a stop of 3795, a short entered at higher levels is going to be much more rewarding.

Resistance levels : 3717, 3730, 3780

Support levels : 3625, 3605, 3585

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