Nifty today made a nasty reversal today. Nifty travelled 175 points from open to closing which is a big number in a day. Strictly, Technical perspective it looks very weak and we should have followup down day.
Market breadth was negative but it wasn't very strong negative today, infect it was just 50% negative day than Feb 27. Which makes me believe that, not many stocks went down today and thats not a weakness, When I see big down day, i want to see major weakness in the market. Tomorrow should give us a good picture, its fustrating move in the market today.
Overbought-oversold ration turned negative but we don't see many negativity there as well. Based on todays action, I would like to see sharp jump in oversold ratio which didn't happen today.
Looking at all above things, I believe that market is weak (until proven otherwise) and shorting can be beneficial but at the same time market can make bounce in a day or two...one need to be ready to cover their trades if market go against them.
I will be looking for both shorting and long position but will focus more on shorting side trade setups....
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