It was a remarkable expiry day in the month of April where there was an almost complete bull engulfing pattern. From the peak of the series, if we simply look at the close, it shows bulls are still strong and only that they did not push NIFTY higher for the expiry.
Another series has begun and assuming that the move on the expiry day and taking into account the prior move to test the previous high made for the series, NIFTY could very well see higher levels before correcting further in 'May'.
The general view technically, fundamentally, politically and even if we add historically it all points to direct bearishness. But as written in the previous post will that happen too soon?
That is were again I am extremely cautious. NIFTY might see much higher levels before correcting further.
There is still very low participation when we look at the volumes. But how long retail can stay in the sidelines if NIFTY is zooming. This is something which cannot be resisted and there has to be an hysteric participation before this market can correct. This has not yet happened and I was expecting to happen anytime in the last week of April.
The key resistance levels are 3520, 3580 and 3630 and the support levels are 3447, 3420, 3403
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