Bears were made to run for cover in the last 45 minutes of trade on friday and the close was almost at the day’s high. The short squeeze was so intense that the move happened so fast.
Now clearly all the late bears of the last two sessions are trapped heavily again and we are entering into the expiry week.
Does this mean we would only see a higher close from this point for the expiry?
I dont think so.
The intensity with which 4450 levels were broken on the downside earlier points to clear weakness and this friday move could also be to throw the late bears or weak bears out of the markets.
At this juncture, 4375 is going to act as a strong resistance and this level should not be crossed in the next three days for a lower expiry. Any break below 4251 and 4222 levels would impart weakness and will push NIFTY to test 4117 levels immediately.
Resistance levels : 4353, 4375
Support levels : 4282, 4251, 4222, 4197