Nifty 27Jan’21: Law of Averages catching up

Nifty loses ground for the fourth successive trading session. The short term down trend is now extending itself further with every intra-day bounce back getting sold into. We have a confluence of supports at the (13,700-13,900) zone. Yes, it is a wide 200-points range, but considering the nature of momentum with which the index is selling off, we need a wider range for a soft landing. We should ideally get a short term bounce back from close to this 200-points zone. Strategically short positions should look to protect open profits and contrarian longs can look for opportunities. Brace yourself for some volatility as we head for derivatives expiry tomorrow.

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