For the last couple of days, Nifty clawed back around 8% from the lows made on 23rd Jan. But today, on the expiry day, it touched the resistance line around 2860-70 range and fell back. A hanging man type candlestick (on NF chart) and a doji (on Nifty Spot chart) was made after 2 days of significant upmove, which might just suggest a fall back. Further SST (Saptarshi Swing Trade, though this is not my patent) suggests that shorts to be carried as of now. There is a significant divergence in the On Balance Volume based on both highs and close values. The volume picked up and huge short rollovers were seen in the Feb series. SMR went up to 56 with falling prices indicating danger ahead. The economic news has also been bad and more jobs are been cut worldwide. These people will have to bank on their investments if any to live on. As a result, we might see more outflow of money from the stock markets worldwide. Supports will come around 2750 and 2620 below which a free fall might be on the cards. The upside looks capped as of now.
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