Be wary of going short in Nifty

The Nifty hit new highs. However, it also experienced some selling pressure, resulting in a minor correction. On Wednesday, April 5, the index hit a high of 9,273 but it had corrected down to below 9,200 by Monday (April 10).

The last week saw reasonable volumes and advance-decline ratios remained positive. However, while both overseas and domestic institutional investors remained positive, buying moderated. The dollar hardened a little as the FII buying abated. Retail investors also booked profits at above 9,225. This correction should have support at 9,120-9,150. That was the prior all-time high, established in 2016.

On the upside,