4X return in the Market today
- Abhinav Kumar
- Jun 1, 2020
- 1 min read
The surprise upside movement of Nifty in the last 30 minutes of trading on Friday, 29th May 2020 was an indicator for something unusual happening in the market today.
The unusual activity was the announcement of Unlock 1.0 by the Government over the weekend leading to a hope of economic recovery. This news with high hopes of investors led to a gap-up (when opening price is very high as compared to previous day's closing price) opening today.
Look at the following chart to observe the change in opening price of 10000 CE.
Opening price of 10000 CE was 16 which itself was 2x as the closing price on Friday was 7.
A trade taken at 25 in the morning rose to 100 by 12:10 pm (4x return).
This looks like a Double Top formation on Nifty as of now (9900 was high point on 30 Apr 2020), which means that there could be a correction from this level.
If the Index manages to go past 10100, then the next level will be a very sharp rise towards 11000 level.
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