VWAP closing is 5865 and volatility is 0.88. Nifty spot touched low of 5815 and futures price low was 5826. However, today both intra day longs and shorts had a good time with Nifty again making a new high of 5901 in spot and 5916 in futures. Nifty has closed below VWAP at 5828 on spot and has show first sign of a downtrend.
1) Nifty trading below 5823 is the first confirmation of weakness now and going short for intra day seems possible now depending on the opening. A gap up opening is an opportunity to short now around 5880 levels for a target of 5820-5770. Strict stop loss for short is today's high of futures 5916. Ideal situation to short will be to short on rise above 5880, so losses are minimized in case of a breakout above 5902 of spot.
2) If Nifty sustains above 5902 levels, then a newer high of above 5950-5975 can happen too, but today's close much below VWAP makes it look mildly bearish.
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