The Nifty remained under pressure throughout the day, then suddenly August futures surged from a low of 4331 to reach 4410 - a gain of 80 points in about 60 minutes.
What did the market know about tomorrow to surge today ?
We do not have the answer. But, the Nifty did go back into the narrow trading range of yesterday. A breakout from this range is again awaited, the move could be either up or down. If you were short (as you should have been) then there may be some pain ahead if the Index decides to move up tomorrow.
For the short term, the Nifty have touched the downside target which was mentioned on Friday:
Price Target Range: 4355 - 4225
Time range: August 18 to August 21
Both, Price and Time targets have been met.
Short term: A rally may be possible. Follow the momentum. Keep stop losses in case the trades do not work out.
Inermediate Trend: It does appear that the intermedaite up trend that started from 3790 may be complete. My software targets are 4075 - 3975 on the downside. The estimated time is aroound the first week of September.
Now, remember, targets are just that. There will always some targets that goes wrong.