The Bulls are rejoicing and the Bears are crying. Nifty 50 does it again! Short-term sentiment has quickly turned around in the market. Short sellers, despite making decent returns the last couple of months, are caught off-guard.
Since the beginning of July, the Nifty 50 has been on a bullish cycle. Prices have rallied all the way from 15600 and are now trading around 17200 (At the time of writing this content!)
Prices have broken the Parallel Resistance, indicating strong buying pressure on the Index. Take a look at the Chart of Nifty 50 in the 2h timeframe
Nifty 50 – Price Action Analysis on 2h Time frame
If prices go any higher, it might encounter a potential resistance around 17500. On the other hand, Support is around 17000.
Since prices have reached monthly highs, lots of uninformed traders are jumping into the rally. If this entire movement turns into a Bear trap, these uninformed traders will be forced to liquidate their positions.
There’s a good possibility of prices retesting the Support zone at 17000 to shakeout weak hand traders.
Keep an eye on the Price Action and tread carefully… To learn more about trapped traders, checkout the video link given below.
