Today Nifty had a gap up open and then fell like a rock to allmost 2% down then open range. This usually happens before the reversals as big investors wants stocks from breakout traders buy order and take them for shorting. This is a one strong climactic action here.
I don't see strong negative breadth and market is still overbought. Those two things doesn't show a lot of negativity in this market. So far, We had a one major negative breadth day on Jan 30th,
Next support levels are 5330 and 5230 area. If those two levels are broken then, we are looking for bigger pullback from here.
Most big cap ended up in read too. Banks look strong here (do they know I am going to short them soon?).. Big cap started going down with volume here, which may be a early sign of turning point.
I am not suggesting to take higher risk as market can go down anywhere from here.... but I believe at least a short term pullback seems to be a good possibility now.
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