NIFTY was in a tight range for quite some time moving up one day and down the other. If you look at the chart pattern, you can see a bullish engulfing pattern on Thursday, the 12th but there was quite a fall from the day’s high towards the end of the session.
If you look at the volumes on the 11th and 12th, you can see that when NIFTY fell on the 11th, it was with the least volume that we have seen for the past several sessions and on 12th, the volumes significantly increased.
Now that the weak bulls were also shrugged off on the 12th, the move should have been prety much decided on the 13th.
Also all other indicators were favouring bulls at that point. NIFTY was in the oversold region and it was quite far off from its 20 DMA and more than that ALL people were extremely bearish, thinking that NIFTY would break Oct lows of 2200 levels.
Clearly the charts were telling a different story.
Charts created using FCharts PRO