Trade Log NIFTY August 4

NSE:NIFTY   Nifty 50 Index
In my August 3 post, I had said

Today is the fourth day for the down move. When I see the reliance chart and NIFTY chart I think touch of support zone 10780-10830 is possible in tomorrow’s session.
This zone is where there is a possibility of some sort of bounce. This is the first bounce after correction, so likely to fail. It is better to wait and let the pattern form before in long side trade.

I was wrong here. I anticipated 50 more points before the bounce. But NIFTY bounced hard from the 10900 zone.

My trades today

I bought CALL when NIFTY sustained an initial high. And sold at resistance. I exited early as it was the reverse of the trend.

My observations for the day

NIFTY reversed the trend on the hourly chart by closing above 11080. It gained 1.87%
BANK NIFTY supported 1.99%
VIX dropped 5.44%
Advance Decline is 32 to 18.
Reliance Industries gained 7%+. This alone contributed 117 points
Open Interest buildup at 11000 Put option is strong. Indicating conviction amongst the buyers.

My view for tomorrow.

Considering the momentum NIFTY had on 4 days of downtrend, I treat this bounce as the first bounce, which is likely to fail. But considering the chart of Reliance and BANK NIFTY , I feel there is some more upside up to 100-150 points.
For tomorrow, I expect sideways market mostly with touch of 11050 - 11000 area, which should find some buying before NIFTY moves into the second leg of rally towards 11150+


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