Nifty has made a short term bottom at 4766 on 29th January and bounced back from that level to rally towards 4951. Now the level, 4766 is crucial for short term. Likewise, the bottom formed on 29th January in individual stocks also crucial for short term.
On 4th February many Nifty Stocks have broken their 29th low by closing, which indicates that further declines are possible.If Nifty breaks the crucial level of 4766 today, then it is likely to test 4400 in another 7 trading sessions.
Positional Traders can initiate fresh short positions, if Nifty breaks the low 4766. Initially, it could decline to 4400-4450 levels.
On contrary, if Nifty fails to move below 4766, then a short term rally towards 4900 is possible.
