Cover short positions. Bounce possible from current levels.

Cover short positions. Bounce Possible from current levels.

As mentioned in last forecast, nifty completed minor down wave today at 10840 around.
From here, counter trend move can begin and nifty can bounce from current leve 10900 towards 11200-11300+ levels.
Avoid short selling at current levels as Technical indicators showing Bullish Divergences.
Option data also suggesting that 10800 level acts as support for short term and Bulls can step in to initiate fresh long positions for short term.
Impulsive down wave which was started from 12246 has appeared to be completed today and counter wave in form of Bounce can be start any time from here.
This is good opportunity for traders those who which to initiate long positions for limited upside.
Keep strict stoploss below 10740 zone for long positions.
Every dip can attract buying support from Bulls.
Trade accordingly.

Suryadev Bandari
Research Analyst

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